Multiples for pest control business

by a searcher from Boston College

4 months ago

Hello - I am currently looking at a pest control business. Has anyone bought or diligence a similar industry? Curious on multiple ranges in this industry. Buyer is looking for 4x. Business is ~$1m in SDE.

1 like
73 views
8 comments

intermediary from University of Florida

Are there liek 4 employees or is there a good base to work with?

1 month ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

I didn't look at this size range but 4x at $1M SDE seems great - would lock it up if you can - assuming it's in ok shape w/ some recurring revenue, reasonable churn and pricing, and is a fit for you personally. Market is consolidating quickly w/ major PE and strategic consolidators buying at that size and above. Potomac (see https://www.potomacpestcontrol.com/blog-categories/commentary) has a lot of content and commentary on valuations for larger sized M&A deals (>3x revenue) - very frothy and has been for a while. He'll say that acquiring large pest control companies is not a game for searchers or multiple-oriented PE shops.

3 months ago | like reply | 1 like

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