When is a good time to consider selling your company, or acquiring another? Anytime, apparently.
Pest control companies are still being bought and sold, despite the coronavirus pandemic. Companies that want to grow and expand their reach continue to make deals and acquire companies.
Pest Management Professional’s (PMP’s) 2020 Merger Guide survey explored pest management professionals’ (PMPs’) willingness to sell by asking, “Every business is for sale; the only real question is, for how much?” Nearly a third of respondents this year believe this statement to be true. Eight years ago, a little more than half felt that way, however.
PMPs who have been with companies that were bought or sold offer advice based on their experiences, because eventually, you may find yourself in the same situation.
Maintain contact with current customers, and gain their trust by making sure service is consistent, says Gavin Gallifant, owner of National Environmental Solutions in Peoria, Ariz., and a PMP who has been through the merger process.
Ask buyers how they plan to interact with the company’s current employees and customers, advises Kevin Citarella, president of Citarella Termite & Pest Management in Spring Hill, Fla.
“Building recurring revenue is the No. 1 way to make a business more desirable,” says Joseph Edwards, president of North Fulton Pest Solutions in Alpharetta, Ga. Edwards, who also serves as president of acquisition consulting company J. Edwards Services, adds that using an attorney, a certified public accountant, and a broker with pest control industry experience can “make the transition process smoother and less stressful.”