Aug. 5, 2021
Topic: Q2 Wrap-Up
Guests: Donnie Shelton & Dan Gordon
In this episode we discuss:
The COVID-19 "hangover” some pest control operators are experiencing after unexpectedly having a good 2020
Organic growth and demand numbers for Coalmarch clients in Q1 and Q2 2021
How the latest Google algorithm updates are affecting search, spammy sites and Core Web Vitals (CWV), like load speed, and Google Local Services
Donnie’s take on the importance of Google Local Services and Local Pack
Google Local Services updates to messaging leads and online booking
Why the PCO Bookkeepers’ Cost Study results don’t change much year to year
How the PCO M&A Specialists/William Blair Pest Index is put together each month
How the Pest Index is highly correlated to and predicative of the public pest control companies
The Pest Index results for May and June and how they show the industry is healthy, things are going well and there continues to be opportunity
What Dan’s seeing on the M&A side – he’s never been busier! Interest rates are low, growth rates are high and there may be a tax increase on the horizon
Dan’s advice to hold onto your business if you have a 10-year runway, but consider a sale if your runway is two to three years
If your cash-to-owner number is right and recurring revenue is 80 percent or more, you’ll get top dollar when you do sell
How Dan has a client who signed an LOI for the highest multiple he knows of for a sub-$10 million pest control company (3.5 times revenue)
How if taxes go up, multiples could go up too
Advice: “It’s an extremely robust (M&A) market, and we’re seeing these valuations are extremely high for quality companies … It’s a very exciting time to be in the pest control business.” –Dan Gordon
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