Episode 81

5/19/2022

Topic: The Business Case for Partnering with Private Equity

Guest: Josh Finifter, principal, Access Holdings

Click here to listen.

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

Resources mentioned:

• 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

Like what you heard?

Rate and review us on Apple.

Tell a friend in the industry.

Subscribe on