Dan Gordon, CPA
The William Blair/PCO M&A Specialists Monthly Pest Index has released its October report.
According to their joint analysis, the total U.S. pest control index increased 4.6 percent year-over-year in October. This growth is slightly slower than the 6 percent growth observed in September, but overall it’s indicative of healthy end-markets, as the residential pest control market remains strong and commercial pest continues to recover from the pandemic-related slowdown in the spring.
On a sequential basis, the index increased 1.5 percent from September 2020, primarily driven by continued momentum in the commercial pest and termite control sectors. This index includes recurring and nonrecurring revenue for residential pest, commercial pest and termite control. It does not include residential door-to-door companies.
The residential pest index has remained in growth territory throughout the downturn. The commercial pest index bounced back in June and has gained steam in September (up 4 percent) and October (up 5 percent).
Even though the October report represents a strong start to the fiscal fourth quarter, William Blair Equity Researchers Tim Mulrooney and Sam Kusswurm noted in a news release that they would not be surprised to see some deceleration in the November report due to mandatory business shutdowns as COVID-19 cases continue to rise.
PCO M&A Specialists, a division of PCO Bookkeepers, teamed up with equity research house William Blair & Co. to create the William Blair/PCO M&A Specialists Monthly Pest Index.
“We are pleased to partner with the William Blair team to provide this valuable information each month,” said PCO Bookkeepers and PCO M&A Specialists Managing Member Dan Gordon. “This report shows how our industry is resilient and less sensitive to economic gyrations than many other industries.”
The index, which is available at SellMyPCOBusiness.com, debuted Sept. 29 with August data. It tracks the monthly performance of 140 privately held pest control companies across 30 states, with combined annual 2019 revenue of $320 million. View the full October report and the archive of past reports at SellMyPCOBusiness.com.
