Private equity firms are actively acquiring service-based businesses across New Jersey and beyond, and pest control companies are high on their list. With recurring maintenance agreements, steady demand, and route-based density, pest control firms check many of the boxes buyers are looking for.
But for small business owners, selling to private equity can feel overwhelming. How do you know what your business is worth? How long does it take? Who should you trust to help you prepare?
Here are the 8 most often asked questions pest control companies have about selling to private equity — and the answers every owner needs to hear.
1. Can I hire a professional to tell me what my business is worth?
Yes—and you should. Private equity buyers value companies based on profitability (EBITDA or SDE) and recurring revenue. A CPA advisor like Pungello CPA can perform a business valuation and normalize your financials so you know what buyers might pay today—and what steps could increase your value tomorrow.
2. Should I open my books now, even if I’m not ready to sell?
Absolutely. Reviewing your P&Ls and tax returns before buyers see them allows you to make adjustments, clean up add-backs, and identify weak points. The earlier you start this process, the stronger your negotiating position when it’s time to sell.
3. What changes should I be making to prepare for a sale?
Every buyer has a checklist, but some of the most important items include: growing your recurring service agreements, diversifying your customer base, locking in your team, and documenting compliance.
4. Who has the best skill set to help me prepare my business for sale?
Selling to private equity requires a mix of financial, legal, and operational expertise. Accountants like Pungello CPA specialize in transaction readiness—normalizing financials, preparing documentation, and identifying the gaps buyers will question. Pairing that with legal counsel ensures you’re protected throughout negotiations.
5. How Private Equity Is Reshaping Your Industry?
Pest control is consolidating fast. Private equity groups are building nationwide platforms, acquiring local firms for scale and density. That means owners have a choice: prepare now and sell for top dollar or risk being left behind as competitors align with bigger players.
6. How long does it take to get ready to sell?
While some owners think they can sell in a few months, the truth is that most businesses need 6 months to two years (or more) to fully prepare. Starting early gives you time to grow recurring revenue, clean financials, and build systems that buyers value.
7. Will I have to sell 100% of my company?
Not always. Many private equity groups prefer sellers to “roll equity”—keeping a minority share while continuing to help lead the company. This allows you to cash out today and still benefit from future growth under a larger platform.
8. Is private equity only buying pest control companies?
No. While pest control companies are attractive, private equity is also acquiring landscapers, hair salons, engineering firms, tech companies, and even law practices. Any business with recurring demand, customer loyalty, and clean financials can be a strong candidate.
Added Benefits & Features for Sellers
- High cash flow and strong business profile often lead directly to higher sale prices.
- Forecasting cash flows demonstrates predictable future earnings, which reassures buyers and increases competitive bids.
Why Pungello CPA Is the Right Partner
Selling your pest control business to private equity is a once-in-a-lifetime decision. At Pungello CPA, we’ve helped countless owners prepare by:
- Performing accurate valuations.
- Cleaning and normalizing financials.
- Forecasting cash flows to show predictable results.
- Benchmarking against private equity criteria.
Ready to Learn What Your Business Could Be Worth?
Private equity is buying today. The question is: will your business be ready when opportunity knocks?
👉 Find out how much your business could be worth to private equity. Schedule your confidential consultation today.
