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Episode 45

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

Resources mentioned:

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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