Before Mike Atkeison was the owner of Memphis-based Allied Termite & Pest Control, he was a customer. A civil engineer by trade, he owned a ready-mix concrete business that did foundations, and he used Allied for its termite pretreat work.

Over the years, Mike befriended Allied founder Pete Vires. He expressed interest in acquiring the business if Pete ever decided to sell. Mike’s offer came to fruition in 2012 when he bought Allied from Pete and his wife, Wanda. Over the next few years, Mike acquired 10 firms to grow the business into a multimillion-dollar operation.

“As we grew it, we began to get more sophisticated with our reporting and daily production requirements,” Mike says, noting the company also invested heavily in radio, TV and digital marketing to build the Allied brand. “We really ran it like a large company.”

The Decision to Sell

Mike’s expansion plans led him to consider entering the Nashville market. When he looked into buying a business there, he realized that growing through acquisition would become increasingly difficult for him due to the high valuations large companies were paying.

“If we were going to buy a new platform operation in Nashville or wherever it may be, it would require a lot more money,” Mike says. Soon, he met with his business partner and the two decided it was time to look into selling Allied instead.The high price larger companies were willing to pay for acquisition targets was hard to ignore.

“I prayed about it and talked to close friends, and they all said, ‘You’re a fool not to sell,’” Mike says.

The Experience

When Mike began considering a sale, he thought about doing it on his own. After all, he had sold two businesses himself. He also talked to one pest control business broker that turned out not to be a good fit. He knew he needed to maintain the business at a high level while going to market, so he got in touch with the PCO M&A Specialists team, including Dan Gordon, Andrew de la Chapelle, and Steve Linksey. Mike met Dan after a talk at the Southern Conference a few years prior, and he talked to him about buying businesses before, so he was familiar with his work and reputation.

“Because Dan stays so connected in the industry, it really helps him to have credibility within these large companies looking to acquire good companies,” Mike says. “Plus, the financial and operational knowledge allows him to negotiate at some of the highest prices for the seller. These are some of the things he brings to the table for a company that wants to sell.” Mike’s goals for the sale were to ensure his staff and customers weren’t negatively affected by the transaction.

“It wasn’t just financial,” he says. “That was not all we were looking for. We were looking for a win-win for both sides. I really wanted a company who was going to keep the employees intact. If you keep them intact, there’s a good chance you’ll keep the customers intact.”

The Sale

Mike appreciated the fact that PCO M&A Specialists got him multiple offers to choose from. “They allowed me to get in front of people who were interested in our business, and I got to make the decision completely about who we wanted to go with and why,” he says. “Once I got to spend some time with Rentokil, there was no question who I wanted to buy it.” In the short term, Mike remains on board with Rentokil to assistant in the transition.

“I want to do everything I can do over the remaining months for it to be a success for them and our employees,” he says. “It’s been bittersweet.”