The William Blair/PCO M&A Specialists Pest Index is a proprietary compilation of the monthly sales for 158 different U.S. pest control companies across 36 states. For October, the index increased 12 percent year-over-year, showing a slight rebound from September (up 9 percent) and August (up 11 percent).
October’s results are slightly above the long-term historical average index growth rate of 11 percent, but remain below the strong growth observed throughout much of 2021 and 2022.
“Stabilization in October’s results are encouraging, in our view, given the deceleration observed in August and September and recent commentary from several large operators,” William Blair Equity Researcher Tim Mulrooney said in the news release. “Specifically, Rentokil referenced a ‘softer consumer demand environment’ in its third-quarter trading update, and Rollins said that digital leads were ‘flat or maybe even slightly down’ in the third quarter. Given this backdrop, we believe further stabilization in next month’s results could be a positive catalyst for organic growth expectations in the fourth quarter.”
Dan Gordon, CPA, who is Pest Management Professional’s financial columnist as well as a partner in PCO Bookkeepers & M&A Specialists, added, “The economy is in a very tricky spot as consumers seem to be pulling back on expensive luxury items. But pest control seems to be an item that is valued enough by consumers that it is still in demand, which bodes well for the industry as a whole.”
The October results by segment include:
- The Residential Pest Index increased 15 percent year-over-year.
- The Commercial Pest Index increased 12 percent year-over-year.
- The Termite Index increased 6 percent year-over-year.
- The Bed Bug Index increased 16 percent year-over-year.
- The Mosquito Index decreased 6 percent year-over-year.
View the full report and the archive of past reports at SellMyPCOBusiness.com.