5 Signs it’s Time to Sell your Pest Control Business
You’ve thought about it many times. But how do you know when it’s time to sell your business? Here are five signs that you shouldn’t wait – the time to sell is now.
The Taxman Cometh
With a new administration and federal spending at an all-time high, tax reform is looming on the horizon. There are a number of proposed tax reforms on the table, including an increase in the capital gains tax rate from a cap of 20% to a rate as high as 39.6%. In addition, there are also proposed changes for the corporate tax rate, moving from 21% to 28%. (Source: Morgan Stanley report)
Maxing Multiples
According to the Potomac Group, valuation multiples in the US pest control industry have likely peaked and are beginning to contract. Not only are multiples high, but there are now buyers, like Certus, who don’t require a performance hold back, giving you more money on day one of close.
Of course, the one thing that is certain: Uncertainty. With multiples and leverage still at historic highs, you can be certain to get top value for your business in 2021. Will this continue in 2022? That’s uncertain.
Labor Pains
Do labor issues keep you up at night? Are you worried about changing regulations, availability of reliable staff, reporting requirements, etc.? You know how to run a pest route; who would have thought you also had to be an HR expert!
Don’t Put Off Until Tomorrow
Ben Franklin shared the words of wisdom “Don't put off until tomorrow what you can do today.” Haven’t you said “I always wanted to (insert dream here). Travel, learn a language, have a boat, lower my handicap, spend more time with family. The list goes on. How long have you made these promises to yourself? Now’s the time to make those dreams happen.
Health is the Real Wealth
Turning to Ghandi for more sage advice, “It is health that is real wealth and not pieces of gold and silver.” Don’t wait until you can’t physically do the job anymore, because then you won’t be able to physically enjoy the fruits of your labor. Maximizing the return on your years of hard work and sacrifice is important. What’s even more important? Making sure you can enjoy those dreams in good health. And remember it isn’t just about you; it’s about the people you share your dreams with – you want them to enjoy it too.
