Terminix Acquires Quebec-Based Groupe Cameron Pest Control

Terminix Acquires Group Cameron QuebecTerminix Acquires Groupe Cameron Pest Control Canada

Terminix has acquired substantially all of the assets of Groupe Cameron, a Quebec, Canada-based company. The entrance into the Quebec province demonstrates the company’s commitment to growing its Canadian presence and follows 2013 acquisitions of Toronto-based Magical Pest Control and Vancouver-based Care Pest & Wildlife Control. [Read more…]

Rollins Acquires PermaTreat Pest and Termite Control

Rollins Acquires PermaTreat
Rollins, Inc. (NYSE: ROL), the parent company of Orkin Pest and Termite Control has signed a definitive agreement to acquire PermaTreat Pest Control Company, Inc. through a tax-free reorganization of PermaTreat’s parent, Wilco Enterprises, Inc. The all-stock merger, which is expected to close on August 1, is the first in Rollins’ recent history and carries significant potential tax benefits for Wilco’s stockholders.

[Read more…]

Potomac Announces the Sale of Pugliese Pest Solutions to Orkin

Orkin Acquires Copesan Partner Pugliese Pest SolutionsOrkin Acquires Pugliese Pest Solutions
The Potomac Pest Control Group today announced the sale of its client, Pugliese Pest Solutions, to Orkin.

With a fleet over 40 vehicles, the Company, headquartered in Utica, NY, services residential customers in the Mohawk Valley and commercial customers throughout the State of New York, Pennsylvania, and Vermont.

For over half a century, Pugliese Pest Solutions, Inc., has been a premiere provider of pest management services in the State of New York. Founded in 1963 by F.J. Pugliese, as F.J. Pugliese Co, Inc., the Company provides a full spectrum of general pest control and fumigation services for commercial, industrial, municipal and residential customers. [Read more…]

Potomac Has Been Engaged by a Leading Australian Pest Control Firm

 

The Potomac Pest Control Group announced that it has been engaged by a leading Australian pest control firm to advise its shareholders on valuation and strategic alternatives. The decision to review strategic alternatives was driven by the fact that the firm had been recently contacted by a large, US-based pest control firm that is interested in acquiring pest control resources and capabilities in Australia. [Read more…]

Selling Your Pest Control Business to Terminix – Terminix Pest Management Acquisitions

 

Interested in selling your pest control company to Terminix?

Not necessarily interested in Terminix in particular, but have been contacted by Terminix and think it might be the right time to sell?

There are a few major mistakes that owners of pest control companies make when take their businesses to market. The biggest, and most costly of these errors is to assume that their company only has one value and each acquirer will likely pay the same price. [Read more…]

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…]

Selling a C Corporation — Stock Deals Have Returned to the Pest Control Industry

While we haven’t seen them for over a decade, today’s competitive M&A market has driven Orkin, Terminix and Rentokil to consider stock purchase transactions — and in some instances actually do them.

Rollins, the parent-company of Orkin, purchased the stock of a C corporation in December of 2012 — a roughly $4 million transaction. Additionally, two of Potomac’s sell-side clients currently have Letters of Intent on the table from all three of the national acquirers, and most of the offers are for stock purchase treatment. [Read more…]