Selling a Pest Control Business
You have cornered a niche in the market with your pest control business, and certainly cornered your fair share of creepy crawly things, but when it comes to the future, there really are only three choices that you can make.
You can hang on to the business and run it indefinitely, you can pass it on to a trusted family member, or you can sell it on the open market.
And quite likely, “selling my pest control business” was not a class you took in school, so a pest control advisor can help you to understand the ins and outs of the process and set you up for success.
1. READY TO SELL
This group is ready to sell their pest control business immediately and be out within 6-12 months with money in the bank and time on their hands.
2. SELL IT SOON
These business owners are taking a slower approach, wanting to be out in 2-5 years. They may also choose to sell the majority and keep an equity portion to continue to grow their business.
3. DOWN THE ROAD
If you are a business owner with more of a long term goal, and want to sell your business in five or more years, then you belong in this group. You will focus on building cash flow until it is sales time.
Also Consider...
Growth Goals
Besides the timing, you also need to consider your personal growth goals. If you are saying “How do I sell my pest control business,” you first need to figure out what your ultimate goals are. Do you want to sell and get out in style with money in the bank? Do you want to sell part of your business and retain some equity in the company? Maybe you just are ready to retire, or you want to dip into another kind of business entirely. You need to understand yourself and your personal goals in order to ensure that you can make your dreams come true.
Find the Value
While you are busy saving the world from pests, you probably have no idea that there are prospective buyers looking for just your kind of business to invest in. If you are saying “I want to sell my pest control business,” you need to understand that there is a whole market of buyers looking for a business on the upswing. A pest control advisor can assist you in the process of understanding both the value of your company and the type of buyer who is interested in your.
Look for Patterns
Let’s face it, as pest control professionals, you will always be in demand. But it is sometimes difficult to determine which way the business market will go. With an aging workforce and people sometimes shying away from the trades in favor of college, you know as a business owner that retaining high-quality workers is difficult. Add to that the burden of your inventory which is probably suffering at the hands of higher costs and supply chain issues, and you might be confused about what to do. You need to find just the right time to sell pest control business, to make the most from your company.
Understand the Market
If you watch what the market is doing and how it is trending, you can answer the question “Should I sell my pest control business?” In today’s economy, often larger companies will want to buy smaller companies and form a conglomerate. This helps with diversification and geographic growth. In a questionable economy, where inflation, recessions, and the supply chain are all issues, it might be a good time to consider selling your pest control business.
Find a Successor
It takes a certain type of entrepreneur to run a pest control business, and let’s face it, your children just might not be that interested in it. Often, a business owner will assume that his children will assume the business someday, but that is not always the case. Unfortunately, even the most stalwart employee is not usually up to the task of taking over a family business. If you sell your pest control business, however, you might be setting employees up for success because they can be part of a bigger team.
Full Sale
A full sale, as the name implies, means that you will take your pest control business and hand over 100% of the business for an agreed upon price.
It often takes between 6-9 months to complete the sale of a business. And then typically you would stay on for a short transition period.
You and the buyer would ensure that the compensation was mutually agreed upon, and this should be a win/win for both parties.
Partial Sale
A partial sale occurs when you still have some interest in your company, and want to continue working in it for a few years. In this scenario, you will sell a majority (usually 70-80%) of the pest control business, and keep the rest in equity ownership.
For a period of 2-5 years, you and the buyer will work together to build more equity and cash flow, and manage the business together. When you go to sell the rest, you will essentially get to take a “second bite of the apple” as you complete the transaction.
Long Term Sale
For those with a more long-term sale strategy, there are only two important words: cash flow. If you are interested in selling your business in five years or more, do everything in your power to maximize your profits today.
Even if you want to sell your pest control business years from now, your work today on cash flow is extremely important.
Don’t wait until right before you are ready to retire, or you will lose precious cash flow that would help at sale time.
Why Work With Brentwood Growth
Access to Buyers
Over 400 private equity firms and consolidators that are actively looking to purchase.
Confidentiality
Ensure the sale of your business remains confidential to avoid disruptions for you.
Industry Expertise
More than 20 acquisitions with transactions from $80 million with an average of $4 million.
Valuation
Learn the value of your business and receive support with pricing to the market.
Negotiation
As your mediator, we work with you and the buyers to make sure both parties are satisfied.
Experience
Lead by a team with 75+ years of experience. Our experience ensures a smooth experience.
Do You Know What Your Business is Worth?
© 2023 Brentwood Growth Corp. All rights reserved. Website by BeiBay