What’s it Worth – Valuation and Value Creation in the Pest Control Industry Presentation

 

From the 2012 PCT Virtual M&A Seminar, you can download a copy of Paul Giannamore’s presentation here: What’s it Worth – Valuation and Value Creation in the Pest Control Industry Presentation.

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…]

Five Mistakes That Will Cost You When You Sell Your Pest Control Business

In its January 2014 edition, PCT Magazine recently distilled the wisdom and core message of Paul Giannamore’s presentation at the 2nd PCT Magazine Virtual M&A Conference. You can download the article here:

5 Mistakes That Will Cost You When You Sell Your Pest Control Business

The article discusses these five major mistakes that cost sellers dearly: [Read more…]

Australia: The New Frontier in Pest Control Acquisitions

Rollins, the parent company of Orkin, has finally taken the plunge. After years of international franchising, Rollins agreed to acquire Perth-based Allpest WA in January 2014.

Allpest generated approximately $25 million in 2013 and it is likely that Orkin will attempt to take a very similar path in Australia that it did in Canada, where it is now the dominant player in the Canadian market. [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…]

Potomac Introduces The Potomac Pest Control Executive

Since 2007 Potomac has published cutting edge research and commentary on value creation, M&A and strategy in the pest control industry.  In September 2013, The Potomac Pest Control Group has renamed its industry leading publication The Potomac Pest Control Executive (“PPCE”). [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…]

What’s Your Pest Control Company Worth – PCT Magazine M&A Supplement

PCT Virtual 2.0 M&A ConferencePCT Virtual 2.0 M&A ConferencePCT Virtual 2.0 M&A Conference

At PCT’s Mergers & Acquisitions Virtual Conference last year, The Potomac Company’s Paul Giannamore offered insight into how to value your pest control business.

Download the article here: Whats it Worth – Valuing Your Pest Control Business – PCT Magazine Potomac