How to Buy a Pest Control Business 

Buying a pest control company can be a lucrative and rewarding investment. 

In this article, we’ll examine why now is a good time to buy a pest control company. You’ll learn about investing in a startup or a franchise. We’ll also discuss how to place value on an existing company. 

And, finally, where to find successful pest control businesses that are up for sale. 

Why Now Is a Good Time to Buy a Pest Control Business 

The pest control industry is experiencing rapid growth. This growth is on target to continue expanding in the coming years. Here are a few reasons why now is a good time to invest: 

Growing Market 

Zion Market Research describes the growth rate of the global pest control market as “phenomenal.” As of 2020, it accounts for more than $21,958.3 billion in revenue. That number is projected to reach more than $31,273.6 billion by 2028. 

The market size  of the pest control industry in the US increased faster than the economy. Urbanization has caused pests like rodents, insects, and termites to become more common. 

Pests want to move indoors. Homeowners want to protect their real estate from unwanted critters. 

Rising Public Awareness 

People are becoming aware that many pests become vectors for disease. Vector-borne diseases like West Nile virus, Zika, and Lyme disease are on the rise. Even insects like bed bugs and cockroaches, can trigger allergic reactions. 

For hotels, restaurants, and other organizations, infestation negatively impacts business. It is also a public health and safety issue. Government agencies, businesses, and even homeowners want to be pest-free. 

This has led to increased demand for pest control services. 

Low Entry Barriers 

You can start a pest control business without a large capital investment. Obtaining the necessary licenses and certifications is straightforward. This makes it an attractive startup and accessible small business opportunity.  

Entrepreneurs can expect to enter a growing market with a consistent cash flow. 

Recession-Resistant 

Pest control has proven to be a resilient business, even during economic downturns. Pests do not discriminate between good times and bad. So, the need for pest control services remains constant. As a long-term investment opportunity, it can be a rewarding choice. 

Buying vs. Starting Your Own Pest Control Company vs. Opening a Franchise 

Should you invest in your own startup? Buy an existing pest control business? Open a franchise? Each option comes with advantages and drawbacks. It’s important to weigh them all before making a decision.  

First, consider your location.  

Some states, like Florida, have many pests. Pests might include termites, bed bugs, roaches, mosquitoes, and rodents.  

States like Montana have fewer critters due to a cooler climate and lower humidity.  

In states with fewer pests, services are called upon as needed. Landscape companies may even offer pest control as an added service.  

States that have pests year-round may need full-time service. Customers may prefer regular appointments or setting up an annual schedule. 

Buying a Company 

Buying an existing pest control company can be an excellent option.  

The business has an established customer base, operational procedures, and existing cash flow. You get a reliable brand, reputation, clientele, and recurring revenue. Plus—the previous owner may provide insight and guidance as you transition.  

However, the price may be higher than investing in your own company or franchise. There may be hidden liabilities or operational issues. You may also face challenges integrating your own procedures and culture. 

Startup 

A startup allows you to build your culture and values from the ground up. It is your company. You have the freedom to develop branding, service offerings, and marketing strategies. You keep the profits and equity.  

But a startup also requires a hefty investment of time, effort, and capital. You’re responsible for all aspects of running your business.  

You need to develop your business plan and operational procedures from scratch. You must hire employees, manage finances, and attract new customers.  

This can be daunting, especially if you are new to the industry or lack experience in pest management. 

Franchise 

Investing in a franchise can be more secure. It comes with a proven business model and brand recognition. Franchisees receive training and support. They’ll also get help with marketing, operations, and reaching customers.  

The franchise often has established relationships with suppliers and vendors, too. That can provide cost savings and operational efficiencies.  

Yet, investing in a franchise also means giving up some degree of control. Franchise owners must adhere to strict operational procedures, marketing strategies, and brand standards. They often must pay ongoing royalties and fees, as well. That can impact profitability.  

The franchisor’s territory restrictions can also limit potential growth. 

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How to Value a Pest Control Business 

Valuing a pest control business requires assessing several factors. The company’s financial performance, customer base, equipment, inventory, and standing all figure in.  

The most common valuation method is the multiple of earnings method. This involves multiplying the company’s earnings by a specific factor. 

Depending on the circumstances, the asset-based approach or the discounted cash flow method may also be used. In the end, the company’s worth depends on its unique attributes and market conditions.  

To ensure accurate valuation, work with a business broker or valuation expert. 

How to Find Thriving Residential and Commercial Pest Control Businesses for Sale 

Finding a pest control business that’s for sale takes research, networking, and evaluation. Follow these steps to increase your chances:  

• Conduct market research. Look for industry trends and analyze market demand. Check the competition. This gives you an idea of what to expect. It also helps you identify opportunities  
• Contact a business broker. These are professionals who help sellers find potential buyers. Look for reputable brokers that specialize in pest control businesses. They have access to companies that may not be available to the public. 
• Search online. Digital marketplaces, like BizBuySell and BusinessBroker.net, are excellent places to start searching. Explore pest control businesses for sale in your area. Then, filter the results based on your preferences.  

• Attend pest control industry conferences and trade shows. There you can meet business owners who want to sell. You’ll also meet other professionals in the industry who may know of businesses for sale.  
• Lean into social media. Platforms such as LinkedIn and Facebook can be powerful tools. Join pest control industry groups on these platforms. Post that you’re looking for a business to buy. You may receive leads or recommendations from other members.  

Once you’ve identified a promising pest control business for sale, evaluate it. 

Look at financial statements, contracts, customer base, and employees. Examine its strengths, weaknesses, and opportunities. Then you can make an informed decision about whether the business is a good fit. 

Get Started with These Tips: 

• Read up on licensing and certification. What is the procedure for pest control licensing in your area?  
• Determine how much money and time you have to invest. This can help you decide how you approach starting the business. Is it worth it to start from scratch? Or maybe it’s better to buy into an existing framework. 
• Do some market research. Find out how many pest control businesses you would be competing with. Researching your local market can give you insight into how successful you’ll be. 
• Create a plan. Make a list of what you’ll need to get started. Then, come up with a plan to get there.