Episode 81

5/19/2022

Topic: The Business Case for Partnering with Private Equity

Guest: Josh Finifter, principal, Access Holdings

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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

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