Topic: The Business Case for Partnering with Private Equity
Guest: Josh Finifter, principal, Access Holdings
In this episode we discuss:
How people were skeptical when Donnie and Dan said they were getting into the pest business early in their careers
What is private equity and how are the funds raises
The differences between private equity buyers and strategic buyers
How Access Holdings identifies partners for investment
The business case for a pest control owner to partner with private equity
Why it's important for a seller to know his or her five-year plan or goals
How rollover investments typically work
Josh's take on the short-term direction of M&A and private equity in pest control as interest rates rise
Why the valuations are so much higher in pest control than in other industries, even those with high levels of recurring revenue
The size of Access Holding's fund overall and how much it's looking to deploy in the pest industry
Josh's take on the ideal business structure in terms of recurring revenue and residential vs. commercial
What Access is looking for in a target
The importance of integration and how to do it right
Josh's thoughts on how the Rentokil/Terminix deal will affect the industry
Dan's article about private equity in the May 2022 issue of PCT Magazine: (link to come)
Notable: "The idea is private equity — or any partner for that matter — has to be more accretive than what that person can do by themselves." —Josh Finifter
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