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Trade and home services

Structural pest control businesses

Wild Rose Advisors advises the owners of pest control businesses, the closest thing in the trades to a subscription: scheduled, recurring and largely non-discretionary work.

What a buyer pays for

In this trade, value is driven by the share of the work that recurs without being sold again, more than by revenue.

  1. 01

    Route Density

    An acquirer is buying revenue per hour of driving. Accounts concentrated in one area are typically worth considerably more than the same number spread across a metro.

  2. 02

    Contract Mix

    Termite renewals and scheduled commercial contracts are priced differently from one-off treatments. Firms that can evidence the split are paid for it.

  3. 03

    Licensed Applicators

    The business cannot operate without a certified applicator. Who holds the license, and whether that person remains, is a diligence question in every transaction.

The buyers

Many long-established, owner-operated businesses in this trade face a succession decision rather than a growth decision. The national platforms and regional consolidators already present in a market are typically the first strategic buyers to approach.

An owner who has received an approach may bring the offer to Wild Rose Advisors before signing anything. A letter of intent usually carries an exclusivity clause, and once it is signed the seller's leverage is largely gone.

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The Practice Serves

  • Commercial license holders with an established recurring route
  • Route density in one or two metros
  • Owners approached by a national buyer who seek a view of whether the figure was competitive

Wild Rose Advisors welcomes conversations with the owners of founder-owned companies.

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