Jan. 6
Topic: What's Ahead in '22?
Guests: Donnie Shelton and Dan Gordon
In this episode we discuss:
How the pest control industry is on fire with Dan's M&A firm closing out 2022 with $250 million in M&A deals
Dan's and Donnie's thoughts on COVID and what might happen this year, including the potential vaccine mandate for employers
The impact of all the government stimulus on the economy
The PCO M&A Specialists/William Blair & Co. Pest Index, a leading indicator for the industry, shows the industry performed well in November, partly due to weather and easier numbers compared to last year
How inflation is affecting the industry and how pest control operators should respond
How the lawn care market is facing an inflationary double whammy due to materials and labor increases
How the Consumer Price Index rose nearly 7 percent in 2021
The major M&A deals in 2021, including WorkWave buying Real Green Solutions and Rentokil purchasing Terminix
How the Rentokil/Terminix deal may affect the average pest control company and what it could do to multiples
What's going on with digital marketing costs (pricing is up 15-20 percent, on average, Donnie says)
Could tax increases happen sometime soon? Dan and Donnie don't see major changes yet, but Dan thinks smaller increases might come later in '22
Donnie and Dan predict another good year with fewer dramatic events than 2020 and 2021
Resources mentioned:
Bureau of Labor Statistics Dec. 10 statement on the Consumer Price Index
Episode 40: Inside the Blockbuster WorkWave/Real Green Systems Deal
"It's really nice to say 'Jeez, our company grow 10-15 percent,' but if all of that is because of an inflation-based price increase, you really didn't." —Dan Gordon
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