Commercial Pest Control Company
This article outlines the acquisition approach for a commercial pest control company specializing in B2B clients such as restaurants, food production facilities, hotels, office buildings, and medical institutions. The company provides ongoing pest prevention, inspection, extermination, and regulatory compliance services. It holds advanced state certifications in food safety pest management and employs licensed applicators trained in integrated pest management (IPM) methods.
With $3.9 million in annual revenue and $865,000 in adjusted EBITDA, the company has a highly defensible market position in its metro region, with over 84% of revenue generated from long-term contracts billed monthly or quarterly. Clients include national foodservice brands, third-party logistics providers, school districts, and commercial landlords.
The company is a prime SBA 7(a) acquisition candidate. The business offers sticky customer relationships, territory exclusivity through licensing, and consistent service frequency. Growth potential lies in acquiring small solo operators, expanding route density, offering specialized IPM services, and growing compliance-based programs for food and healthcare environments.
Proposed SBA 7(a) Deal Structure
The business’s consistent cash flow, recurring revenue model, and low customer churn support a straightforward SBA 7(a) financing structure:
Purchase Price: $3.46 million (4.0x EBITDA)
SBA Loan: $2.595 million (75%)
Buyer Equity Injection: $346,000 (10%)
Seller Financing (Subordinated): $519,000 (15%) amortized over 6 years with a 12-month interest-only period
Additional terms:
Seller note subject to 20% clawback if more than 12% of MRR (monthly recurring revenue) is canceled within 180 days
$50K seller performance bonus if buyer secures $300K in new annual contracts within the first 12 months
Seller remains as license holder and operations advisor for 6–12 months
Customer Segmentation and Revenue Breakdown
Client types:
Restaurants and food service operators: 30%
Warehouses and 3PLs: 20%
Healthcare facilities and nursing homes: 18%
Hospitality and hotels: 12%
Property managers (retail and office): 10%
Schools and universities: 6%
Specialty food manufacturing plants: 4%
Revenue streams:
Monthly preventative pest control visits: $2.85M
Quarterly and biannual rodent and insect extermination: $410K
Compliance inspections and IPM consulting: $360K
One-off emergency treatments and seasonal infestations: $280K
The average client contract length is 24 months, with auto-renewal clauses. Many contracts include guaranteed visit windows, service-level agreements (SLAs), and regulatory compliance tracking. Clients receive service logs and chemical usage reports with each visit, required by health departments and auditors.
No single customer represents more than 5.4% of total revenue. The top 50 clients comprise 62% of gross billing.
Technician Workforce and Route Density
Service team:
6 licensed pest control technicians (state certified)
2 IPM specialists (trained in low-toxicity and LEED-compliant pest management)
2 field supervisors
2 dispatch coordinators
1 compliance officer
1 sales associate (part-time)
Each technician handles 3–4 route days per week, with optimized geo-clustering for drive-time efficiency. Routes are designed to limit windshield time to under 90 minutes per day and support revisit cadence for high-risk sites (kitchens, food warehouses, schools).
Post-acquisition labor strategy:
Introduce milestone-based bonuses for technicians based on contract retention and upsell success
Expand training program to upskill junior staff into IPM specialists
Add bilingual customer service rep to serve growing Hispanic business clientele
Fleet, Equipment, and Facility Infrastructure
Fleet:
7 fully stocked pest control vans (2017–2023)
GPS and spray record trackers installed in all vehicles
FMV: ~$280,000 (all owned)
Facility:
5,500 sq ft operations HQ with:
Pesticide storage and washdown containment zone
Training room with mock service area
Dispatch center and call hub
Chemical inventory room with audit trail system
CapEx outlook:
Replace 2 vans in the next 12 months: $65K
Upgrade pesticide tracking software to cloud version: $9K
Expand digital compliance report engine: $6K
Optional: Add route simulation software for technician dispatch optimization: $12K
Sales, Marketing, and Channel Development
Current sales channels:
Referrals from food auditors, safety consultants, and property managers
Inbound SEO (“restaurant pest control + city” / “commercial pest prevention + [metro area]”)
Paid Google Ads during spring/summer seasons
Association memberships (BOMA, IFMA, local restaurant alliance)
Annual marketing budget: ~$42,000
Growth levers:
Hire full-time B2B sales rep focused on food and hospitality verticals
Develop pest prevention packages bundled with cleaning/sanitation partners
Acquire solo pest operators with >$250K in revenue for route consolidation
Add LEED-compliant pest prevention program for green-certified buildings
Sell annual compliance audits with 12-month inspection subscriptions
Financial Summary
Revenue: $3.9M
COGS (labor, chemical, vehicle): $1.95M
Gross Profit: $1.95M
SG&A: $1.085M
Adjusted EBITDA: $865K (22.1%)
Service line margins:
Preventative services: 55–65%
Emergency work: 70%
IPM consulting: 60–68%
Compliance audits: 75%+
Most clients are invoiced monthly via ACH, with some property management groups paying quarterly or annually in advance. Emergency work is paid upfront or billed at time-of-service with net-15 terms.
Licensing, Legal, and Regulatory Compliance
Licensed commercial pest control applicator with food facility certification
Certified IPM provider in 2 states
OSHA and EPA logs maintained and audited quarterly
Pesticide usage and SDS records compliant with health department inspections
Fully insured: $2M GL, $1M auto, $1M umbrella, $1M workers comp
No litigation, violations, or licensing citations on file. Seller is in good standing with state environmental and health boards.
Working Capital and Transition Planning
Payroll float: $95K–$110K
CapEx and software upgrades: $25K–$30K
Seller consulting and licensing transition support: $35K–$50K
Route technician hiring/retraining budget: $25K
Sales and marketing expansion: $20K
Ideal Buyer Profiles
B2B service business owners (janitorial, HVAC, facilities)
Environmental or regulatory service entrepreneurs
PE firms or acquisition aggregators with route-based infrastructure
Licensed pest control operators seeking retirement-ready acquisition
Post-Close Execution Plan
Conduct top 40 client outreach and route audit for upsell and contract extension opportunities
Add one full-time route tech and retrain an existing tech into IPM consultant role
Deploy upgraded CRM and compliance log automation
Identify 2–3 small pest companies for tuck-in acquisition within 6-month window
Launch bundled compliance program targeting restaurant groups and schools
Conclusion
This commercial pest control company offers high-margin, recurring revenue with contract visibility, low churn, and strong field infrastructure. It’s a natural SBA 7(a) acquisition with modest equity required, a skilled technician team, and territory exclusivity in highly regulated verticals. The buyer can scale quickly by expanding technician headcount, optimizing existing routes, and layering on compliance-centric services that command premium pricing. With steady cash flow and durable industry demand, this business delivers a reliable platform for buyers seeking service-based earnings with regulatory moat advantages.
