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PEST · Q1 2026 · 3.0×–5.5× SDE band held quarter-over-quarter (n=92, BizBuySell trailing-12-month closed deals)PEST · One-time treatment revenue co-mingled with recurring route in 47% of deals · Earnings Quality finding pre-LOIPEST · Annual renewal rate undocumented in 38% of deals · Above 85% is the strongest top-of-band signalPEST · Sole-owner pesticide applicator license in 43% of deals · CA / TX / FL / IL require re-examinationPEST · Geographic concentration above 40% in single zip / HOA in 27% of deals · Transferability cliff riskPEST · Industry size $28B (IBISWorld 2024) · 4.8% CAGR 2020–2025 · Among most durable services verticalsPEST · BLS 37-2021 median wage $43,470 (May 2024) · Licensed applicator $55–$85/hr loadedPEST · Rollins (NYSE: ROL) ~30 add-ons/year · Rentokil/Terminix $6.7B integration ongoingPEST · Anticimex (EQT) · Aptive Environmental · Hawx Pest Control · Massey (Kohlberg) lead PE roll-upPEST · DSCR below 1.25× post-normalization in 34% of deals · Stress-test at 15% concentration lossJAPAN · 害虫駆除・防除 under Building Maintenance Act · 2.0×–3.5× EBITDA typical · Property-manager-mediatedMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=92 SMB transactionsPEST · Q1 2026 · 3.0×–5.5× SDE band held quarter-over-quarter (n=92, BizBuySell trailing-12-month closed deals)PEST · One-time treatment revenue co-mingled with recurring route in 47% of deals · Earnings Quality finding pre-LOIPEST · Annual renewal rate undocumented in 38% of deals · Above 85% is the strongest top-of-band signalPEST · Sole-owner pesticide applicator license in 43% of deals · CA / TX / FL / IL require re-examinationPEST · Geographic concentration above 40% in single zip / HOA in 27% of deals · Transferability cliff riskPEST · Industry size $28B (IBISWorld 2024) · 4.8% CAGR 2020–2025 · Among most durable services verticalsPEST · BLS 37-2021 median wage $43,470 (May 2024) · Licensed applicator $55–$85/hr loadedPEST · Rollins (NYSE: ROL) ~30 add-ons/year · Rentokil/Terminix $6.7B integration ongoingPEST · Anticimex (EQT) · Aptive Environmental · Hawx Pest Control · Massey (Kohlberg) lead PE roll-upPEST · DSCR below 1.25× post-normalization in 34% of deals · Stress-test at 15% concentration lossJAPAN · 害虫駆除・防除 under Building Maintenance Act · 2.0×–3.5× EBITDA typical · Property-manager-mediatedMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=92 SMB transactions
Scored Listing·Pest Control·Updated 2026-05-02
Upper bandComposite

Pest control route business, 82% recurring, documented 91% annual renewal rate

§ 01 · Observed

What was documented in diligence.

Customer management software export reconciled against billing records for 24 months. Annual renewal rate 91% on quarterly and annual service agreements. Monthly attrition 1.8% — within the efficient 1%–3% benchmark. Pesticide applicator license: state-qualifying individual is a W-2 employee with 6-year tenure; license transferable to new entity under state rules without re-examination. Owner performs zero route stops; no replacement-labor normalization required. One-time and seasonal treatments separated — 18% of revenue, excluded from recurring SDE base.

§ 02 · Outcome

What happened.

Signed at 5.1× SDE. Lender DSCR 1.29×. Closed without repricing.

§ 03 · Structural Pattern

How this deal fits the four-pillar framework.

Upper-band placement driven by renewal rate documentation, license continuity independent of owner, and proper revenue separation. The absence of owner-technician labor normalization removed the most common SDE compression trigger in this vertical.

This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.

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Methodology · Acquidex v1.0, §3.4 (Earnings Quality), §3.3 (Transferability), §5.1 (Add-Back Stripping per SBA SOP 50 10 8). Methodology paper forthcoming Q3 2026.

Sources · BizBuySell closed-deal data, IBBA Market Pulse Q3–4 2025 and Q1 2026, Pratt's Stats SMB transaction database, Acquidex direct deal observations.

Author · Avery Hastings, CPA. Tokyo-based; SMB and lower-middle-market acquisitions in the US and Japan.

Pest control route business, 82% recurring, documented 91% annual renewal rate — Pest Control Deal Teardown | Acquidex | Acquidex