Investment Inquiry: What to Look For in a Pest Control Business for Sale
The pest control industry might be booming, but finding a good pest control business for sale is surprisingly tough.
Thriving markets attract all kinds of businesspeople–including those looking to make a quick buck. Googling “pest control business for sale” yields 79-million results, which underlines how important it is to develop good research instincts to “separate the wheat from the chaff.”
To that end, today’s post is designed to level-up your investment inquiry skills by detailing exactly what you should be looking for when assessing a pest control business for sale.
- Industry experience. As a general rule: the longer the brand’s been in business, the better! Industry experience translates to insider connections, cutting-edge technology, proven business processes, and broader brand recognition, all of which can boost your profit and help control costs.Take Pestmaster for instance. We have nearly 40 years in this business. In that time, we’ve developed national brand recognition and established ourselves as a “Top 100” pest control company out of over 19,000 national competitors. We’ve secured major discounts on insurance and materials for our owners, streamlined training and licensing processes, fine-tuned a high-performance business model–the list goes on. None of that would have been possible for a start-up, which is why experience should top your search criteria.
- Multi-service pest control model. When trying to trim your list of pest control business opportunities down to size, cutting away single-service models is a smart move. In 2019, the demand for all pest control services is booming–everything from bed bugs to vegetation management–which means that any company overemphasizing a single service leaves big money on the table. You can learn more about the growing demand for pest control services on our Pest Control Franchise Industry — Facts and Figures page.
- Quantifiable growth. Unless the franchisor is brand-new, you should be able to get your hands on at least 3 years of audited financials. You want to look for consistent growth in revenues from franchise royalties. If the franchisor only appears to be making money off of the initial franchise fees, consider that a big red flag.When reviewing the Franchise Disclosure Document (FDD), check out the franchisor’s Financial Performance Representation disclosure under Item 19. This will help you assess growth and make future projections. Additionally, you can look at Item 20 to review the growth of new franchisees compared to franchise terminations. This will help you get a clear idea of the brand’s net growth.
- Scalable operations. Beware biting off more than you can chew just because the franchisor tells you to. The best pest control business for sale is that which empowers you to pursue your unique vision.Pestmaster franchises are totally scalable. You can run a small home-based operation with no employees, or a big company complete with brick-and-mortar headquarters, sales associates, and office managers.
Test Out Your Investment Inquiry Skills With Pestmaster
Visit the Pestmaster Franchise website or call 800.525.8866 to speak with a representative and put your new research skills to the test!Back