Pest control M&A
Pest control commands the highest home-services multiples for a good reason: recurring contract revenue is 60–85% of the mix. It behaves more like a subscription business than a trade.
Why buyers want pest control businesses
- Contract renewal rates typically 85%+ annually — better than most SaaS businesses
- Route density creates real operating leverage as you consolidate
- Cross-sell opportunities (termite bond, mosquito, wildlife exclusion) are proven
- PE consolidator demand is intense — Rentokil, Rollins, Anticimex, plus PE platforms
What moves multiples within pest control
Drivers of a higher multiple
- Recurring contract revenue > 70% of total
- Route density (customers per zip code)
- Retention > 85% annually
- ARPU trajectory (systematic annual price increases documented)
- Termite / commercial subscription mix
Drivers of a lower multiple
- One-off / one-shot revenue mix > 40%
- Route sparsity (technicians driving 30+ min between stops)
- Owner-produced sales (route acquisition dependent on owner)
- Missing state license transferability plan
The buyer landscape
Private-equity buyers
Extremely active — pest control is one of the most consolidated home-services categories at platform scale. Both PE-backed roll-ups and public strategics (Rollins, Rentokil, Anticimex) actively acquire.
Strategic acquirers
The public consolidators pay the highest multiples for platform-quality assets $3M+ EBITDA with recurring mix above 70%.
Owner-operator buyers
Active in sub-$1M EBITDA route businesses; less common at scale because consolidator competition on price is fierce.
Process notes
Recurring revenue documentation is disproportionately important. A sell-side QoE should reconcile cohort retention, ARPU trajectory, and route economics on a per-technician basis.
Category-specific diligence issues
- Recurring-vs-one-shot revenue classification
- Route retention cohort analysis
- Termite bond back-book and reserve accounting
- State license transferability
- Chemical / regulated-substance handling records
Frequently asked
What is a pest control business worth in 2026?
Pest control businesses trade at 5.0–7.0× adjusted EBITDA at sub-$1M EBITDA, 7.0–9.5× at $1–3M, and 9.5–13.0× at $3M+. Sub-$1M SDE trades at 3.0–4.0×. Recurring revenue percentage and retention rate drive within-band placement.
Why is pest control the highest-multiple home service?
Because 60–85% of pest-control revenue is contract-based with 85%+ annual retention. Buyers value it closer to a subscription business than a trade — and pay accordingly. Public consolidators (Rollins, Rentokil) have institutionalized this expectation.