Owner, Interstate Pest Control
“One idea can be worth hundreds of thousands of dollars. To me it’s kind of a no-brainer to work with PCO Bookkeepers”
Interstate Pest Control
Goodwill and growth
Prior to founding Interstate Termite & Pest Control in 1988, Rod Culler worked for a national company in sales and achieved many years of success as one of the top sales people in the company. With a stable foundation of knowledge and experience and a drive to build his own business, Rod started what would become the dominant pest management company in the tristate market that includes Pennsylvania, Maryland and West Virginia.
Approximately 60 percent of the firm’s revenue was made up of general pest control provided to residential customers. Approximately 25 percent of the revenue came from liquid termite treatments and renewals. The company’s service matrix was rounded out with about 15 percent of overall revenue allocated to commercial revenue.
The decision to sell
The primary reason for sale of the company was Rod’s desire to retire and pursue other interests. After 27 years of operating Interstate Termite & Pest Control, Rod decided that age 60 was the right time to retire. He’d built a tremendous amount of goodwill in the community, and Rod felt the right buyer with similar values and attention to service could grow the business and profit in a way that would provide a significant return on investment.
Rod believed that if he went it alone he would be at a significant disadvantage, so he knew he needed help. Being very familiar with the experts at PCO Bookkeepers, he knew sister firm PCO M&A Specialists could help evaluate the process and the various exit alternatives. The team could also help structure the transaction and assist in negotiations with prospective buyers.
The PCO M&A Specialists team worked closely with Rod and negotiated a deal that was 30 percent more than his initial expectations. The team could access his computer routing program and QuickBooks files, allowing them to extract value in the customer list where other brokers would not have been able to identify it.
“This knowledge of our database allowed PCO M&A Specialists to maximize the value of our business,” Rod says.
“After interviewing several brokers, I found a trust in Dan Gordon and John Corrigan as they laid out their process and knowledge of the industry as well as their understanding of finances, taxes and valuation methods,” Rod says. “I could not imagine going through such a complex process without them. Their guidance and professional advice were invaluable. I would recommend their service to anyone considering selling their pest management company.”