Inspired Or Acquired Casey McDaniel - Pest Control & Crazy Exit Multiples
Aug 21, 2025
Casey McDaniel, co-founder of King Pest Solutions, shares his journey in transforming a startup into a $2M annual revenue powerhouse in just three years. He dives into the lucrative pest control market and discusses potential exit strategies, weighing immediate sales versus aiming for higher multiples. Casey also recounts the highs and lows of a recent acquisition and how adjusting owner compensation affects business valuation. Plus, he shares insights on employing seasonal door-to-door reps and balancing work-life as a new father.
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Quarterly Recurring Revenue Is Core
- Recurring quarterly residential services make up over 90% of King Pest Solutions' revenue.
- Short, repeatable 20–30 minute visits create high retention and predictable cash flow.
Rapid Year-Over-Year Revenue Growth
- King Pest went from $180K in their first nine months to about $1M last year and is on pace for nearly $2M this year.
- They roughly doubled revenue each year during that build phase.
Adjust For Owner Replacement In Valuation
- When valuing owner-operated businesses, add back owner pay then subtract a market replacement salary.
- Use SDE adjustments to reflect a realistic purchaser's cost to replace owner work.