Pest control is one of the most sought-after home services because the revenue recurs on a route. A real example from M&A Business Advisors is Pest Options, a pest control business, where M&A Business Advisors represented both sides and sold to a strategic buyer. Here is what selling a pest control business looks like.
The deal
Pest control consolidators and strategic buyers actively acquire route-based businesses because recurring service revenue is predictable and easy to fold into existing operations.
How pest control businesses are valued
Like most businesses under $5M, these sell on a multiple of earnings, either Seller's Discretionary Earnings (SDE) for smaller owner-operated shops or EBITDA for larger, management-run companies. The exact multiple varies by the specifics below, so treat any range as a starting point, not a quote.
Pest control value is driven by recurring route revenue: the share of revenue under recurring contracts or subscriptions, customer retention, route density, and margin. Recurring-heavy books command a premium over one-time-service work.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute callWhat buyers look for
- A high share of recurring, contracted or subscription revenue.
- Strong customer retention and dense, efficient routes.
- Licensed, retained technicians.
- Clean books and clear route and customer records.
Getting ready to sell
Grow your recurring and subscription revenue, tighten route density, and keep your techs. Then get a real valuation. I help owners prepare for the consolidators and strategics who buy these.
Want a real number on your business?
I do confidential, no-pressure valuations for owners of trades and service businesses. No obligation to sell.
Book a 20-minute call