Pest Perspectives - May/June 2015 - (Page 31)

operational excellence FIVE CHARACTERISTICS of Attractive Pest Control Merger Partners By George Pickhardt, Chairman, Environmental Pest Service I t's relatively simple for a licensed pest control technician to buy a truck, equipment and insurance policy to start a pest control company. But running the business gets more complicated when your customer base grows to the point where you need to hire more technicians. More employees mean more administrative tasks and managerial responsibilities. For some smaller companies, this is often a point where the owner begins to contemplate merging with a larger company that already has strong administrative and support staff. Environmental Pest Services, previously Arrow Environmental Holdings, has merged with more than 50 businesses in the past www.flpma.org | www.pestperspectives.com four years. After working with merger partners throughout Florida and Georgia, I have noticed a few key characteristics of companies that are ready for a successful merger. 1 High customer retention. An ideal merger will bring a substantial number of customers to the acquiring company. But the loyalty of that customer base is also extremely important. Buyers will need to analyze your customer history to look at retention rates, in turn getting an idea of how many customers can be expected to stay after the transaction. Consistent retention rates that match or exceed national averages indicate that customers Consistent retention rates that match or exceed national averages indicate that customers are happy with the service and will be likely to stay with the company and refer new customers. are happy with the service and will be likely to stay with the company and refer new customers. 2 Solid employee base. The existing employee base is an important aspect of a merger. Buyers want to add qualified and professional employees to their staff. The transition is Pest Perspectives 31 http://www.flpma.org http://www.pestperspectives.com

Table of Contents for the Digital Edition of Pest Perspectives - May/June 2015

Presidential perspective: Out and About with FPMA
FPMA 1980-1999: More Influence, a More Professional Image
Update on the Invasive Conehead Termite Treatment Program in South Florida
Four Secrets to Communicating with Clarity
Capitol concerns: Legislative Tour 2015 Recap
FPMA Leadership: Class 2 Takes on Tallahassee
FPMA corner
Operational excellence: Five Characteristics of Attractive Pest Control Merger Partners
Advertiser index

Pest Perspectives - May/June 2015

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