Selling Your Business

Rick Agajanian, Chief Product Officer, WorkWave 

I’ve been putting thought into selling my pest control business down the road. What do I need to start thinking about now?

Data, data, and more data! At the end of the day, potential buyers are interested in your business’ numbers and the story they tell. Providing comprehensive data ensures that they’re getting the whole picture, so tracking and organizing your data is the crucial first step. Using pest control software can automate the bulk of your data gathering and organization in real time, keeping essential data such as customer records and service histories up to date. In addition to making it easier for buyers to examine them, clean records empower you to focus on growing and maintaining your business—a significant benefit whether or not you’re looking to sell.

Organized data can also help you spot potential hurdles early on and resolve them before you start talking with a buyer. If you’re already taking advantage of software to track your data or plan to start, choosing an option with dedicated reporting features is a game changer in putting your data to work for your business.  The right reports can give you actionable insights to keep your business on course.

Your financial records, which highlight your business’ ability to grow while maintaining gross margins, should be at the top of your list to organize and maintain, but they aren’t the only important records. Buyers will also be looking for organized customer records and service histories. Be sure to keep an eye on your customer retention figures, as well as customer reviews and NPS survey scores; buyers won’t be overly eager to inherit poorly maintained customer relationships.

Should my plans to sell in the future impact how I run my business day to day?

Yes—but also no. Running your operations efficiently absolutely makes your pest control business more attractive to potential buyers, so you should definitely be focusing on efficiency if you’re planning to sell in the future. 

However, running your business efficiently is also the key to growth and profitability, so this is ideally how you’d approach your everyday operations regardless of your plans. Running a tight ship is always in your best interest. If your pest control business runs like a well-oiled machine, it makes for a smoother transition that’s less likely to cause headaches for new ownership. Even if a buyer isn’t using the same technology that you are, using software for crucial elements of your business—such as routing, technician productivity, fleet management, and customer communication—shows buyers that your business is built to be efficient, profitable, and agile.

Another item to keep in mind day to day is ongoing training for your employees, especially when it comes to licensure for your technicians. When looking into potential acquisitions, buyers will see a team of experienced techs with up-to-date licenses and certifications as a dream come true. A hodgepodge of expired licenses or outdated training materials? Not so much.

If I’m going to sell, should I shift my focus from growth to maintenance?

It can be tempting to let up on the gas once you make up your mind to sell, but it’s important to keep at it. For potential buyers, an acquisition that demonstrates consistent growth is more attractive thanks to its momentum. By continuing to grow your business year over year, your business only becomes more appealing. That’s why you have to use every tool at your disposal, technology included, to home in on efficiency at every stage of your operations. Taking advantage of scheduling and route optimization software, for instance, allows you to keep your focus on growth and customer service because you know your business is running efficiently and effectively.

Additionally, sustaining your growth efforts means you continue to raise your business’ value and, ultimately, how much you can expect to make from the sale. Valuation calculates your business’ worth based on core elements such as contracts, recurring services, and revenue; by continuing to sign new customers and sell more services, you’re making the best financial moves for both you and a future buyer.

Remember, whether you’re already preparing to sell your pest control business or are just starting to mull the idea over, I urge you: Dive into your data head-on. Your company’s data has everything you need to make the right decision, drive toward your goals, and ensure your business is always poised for success—whatever that looks like to you.