WILLIAM BLAIR / PCO M&A SPECIALISTS MONTHLY PEST PULSE
PCO M&A & Succession Specialists has teamed up with William Blair & Co, one of the most seasoned Equity Research houses that covers the pest control industry, to create the William Blair / PCO M&A Specialists Monthly Pest Index. This index is a collaboration between the fundamental research and insights from the Blair team and the hard data from PCO M&A Specialists’ sister firm, PCO Bookkeepers, an outsourced CFO and accounting firm that focuses on the pest control industry with over 400 industry firms as clients that make up over $650 million in annualized revenue.
Our growth estimates are supported by real historical data and vetted by Wall Street experts. The historical data and reports we pull from our clients’ records provide strategic buyers with the components that are most important to building their models including tracking of customer retention, the all-important recurring revenue, and SG&A costs they can use to build their profitability analysis.
The William Blair/PCO M&A Specialists Pest Index is a proprietary index of the monthly sales for approximately 150 U.S. pest control firms across the U.S. The combined annual revenue of these companies is more than $400 million. The purpose of the report is to track the monthly performance of several U.S. pest markets, including residential, commercial and termite.
PCO Advises Fox Pest Control in 4th Largest Deal in Industry History
On April 5, Rollins acquired Fox Pest Control, a PCT Top 100 company.
PCO Bookkeepers & M&A Specialists acted as exclusive financial advisers to Fox on the transaction.
According to our friend Tim Mulrooney at William Blair & Co, this deal is the fourth-largest transaction based on purchase price in U.S. pest control history. It’s also believed to be the largest door-to-door deal in pest control history and the first door-to-door company taken seriously by pest control buyers.
Exiting in 3-5 Years? Consider This Advice from Rentokil’s John Myers
If you’re a pest control company owner who’s looking to exit in the next several years, we have some advice for you. On a recent episode of the PMP Industry Insiders podcast, Dan Gordon, managing member of PCO M&A Specialists, asked John Myers the following question. “If I want to sell my pest control business in three to five years, what steps can I take to make my company more valuable or desirable?”
Myers is president and CEO of Rentokil North America, which has completed dozens of acquisitions over the past few years and, most notably, said in December it would buy Terminix for $6.7 billion.
Rentokil to buy Terminix: What an amazing time in our industry! Here’s my take
Dec. 14 was a huge day for the pest control industry, as a watershed deal was announced. If it closes as expected next year, it will make Rentokil, the world’s largest pest control company, also the largest in North America, leaving Rollins (Orkin) as the only public pure-play pest control company.
The deal calls for each Terminix shareholder to receive 1.069 shares of Rentokil’s ADR plus $11 of cash, valuing the deal at $55 per Terminix share, which is a 47 percent premium on their closing price on Monday, Dec. 13. For those pest industry M&A junkies, that’s 3.6 times revenue.
PCO M&A Specialists Pest Industry Merger & Acquisition Insights
A behind the scenes look at PMP Valuations, deal structure, tax consequences of sale & the state of the market
If you are thinking about what your next steps are in terms of the future of your company and are interested in how to maximize your after – tax value upon sale, this guide is a “must read”.
PCO M&A Specialists Industry Insights
Is Rollins really selling? My take (taxes, taxes, taxes) and what it means to you
On June 4th, I was sitting at my computer doing what every deprived sports fan has been doing during the sports vacuum caused by COVID-19. I was day trading. In addition to the fast-moving stocks I watch, I always keep aneye on pest control industry players because stock price is one of the many factors we use to gauge the market and determine maximum value for our M&A clients.
In the mid-afternoon, Rollins stock popped to an all-time high and within a few minutes dropped 5 percent. Fortunes made and fortunes lost, all in a few minutes. With my curiousity piqued, I started to do a little research on what just happened, and over the news wire I found this…
Breaking: ServiceMaster to sell other brands, change name to Terminix
ServiceMaster will sell its ServiceMaster Brands (SMB) business to Roark Capital and change its name to Terminix at closing. The deal is expected to close in 30 to 60 days, making Terminix a pure pest control play, as the company chases the sky-high Rollins valuation.
SMB is a franchising operation with two primary segments:
• Restore – residential & commercial restoration services following fires, hurricanes, water pipe bursts, etc.; and
• Cleaning – janitorial and residential cleaning services.
CLIENT SPOTLIGHTS
