The Right Way to Respond to an Unsolicited Offer – MoleMen Case Study

 

A National Acquirer Approaches MoleMen, Inc.
Like many pest and wildlife control businesses, MoleMen, Inc., (the “Company”) a multi-generation, full-service wildlife control firm was approached by a national pest control company (“BigCo”) interested in expanding its wildlife services into MoleMen’s geography. [Read more…]

Pest Control Revenue Multiples and Rules of Thumb Lead to Serious Mistakes

In all my years as an M&A advisor, I have never…. Let me repeat that, I have never, ever seen an industry so littered with rules of thumb than I have since I began working in the pest control industry.  Pest control companies sell for:  “One times sales”… “dollar for dollar on revenue”… “1x recurring sales… etc.”

Everyone you talk to knows exactly how pest control companies are valued and everyone has a very simple solution to your valuation issues and concerns – a simple rule of thumb.  Buyers and sellers who rely on this nonsense generally get what they deserve, they overpay for a target or sell their pest control business for much less than they should have. [Read more…]

Have Pest Control Acquisition Multiples Hit Their Zenith? Valuations Up Almost 150% in a Decade

Picture this for second.

We just jumped into a time machine and went back in time exactly 10 years — it’s now September 15, 2003. We landed at a closing table whereupon an owner was about to sell his pest control business for exactly $10 million. We quickly grabbed the seller and all of the documents from the table (financial statements, operational information, etc.) and brought them back with us into the future, to a closing table, on September 15, 2013. All else being equal, that seller would be receiving a wire transfer for $14.6 million, instead of $10 million. [Read more…]

Pest Control Company Valuation and M&A 101 – WEBINAR REPLAY

Valuing a pest control business for internal or external sale.  In this webinar, Pest Control Valuation and M&A 101: The Fundamentals, we cover the following:

  • Every pest control business has a range of values simultaneously

Fair Market Value is what the business is worth to you (the current shareholders) while Investment Value is what the business is worth to one unique acquirer.  If you don’t understand the difference between the two it can be a very costly mistake. [Read more…]