The Boardroom Buzz: Grow, Sell, or Exit

More customers are pushing back on price hikes while new demand softens. Increased credit card defaults and car foreclosures further the evidence on consumers’ financial struggles. Have you seen the same trends in your business? The pest control sector has observed declining customer loyalty, probably due to higher prices and tightened budgets. Yet, there's a promising opportunity for companies specializing in termite baiting, as they could gain profits given the consistent demand for such services. Would you follow Paul’s termite baiting-only business model? Private equity deals can be intricate and come with potential risks that demand thorough evaluation. Different private equity firms can yield varied results, with some being more ethical and prosperous than others. As these firms show increasing interest in the pest control industry, will owners shortcut investigating their differences? Audio Mixing and Editing by www.verbell.ltd

Lawn Care Millionaire Jonathan Pototschnik gets candid about difficult decisions and focus on his way into, during, and out of Service Autopilot. How did pre-Fat Pat’s Pest Fat Pat find himself on the lawn-centric SA platform many moons ago? From multi-state janitorial to healthcare software to Dallas metro-based lawn and pest business to ServiceAutopilot, hear where pain finds its place in business.  Jonathan goes into detail on the dynamics of private equity through his exit, and how a third party advisor helps beyond the bottom line. What’s next for Jonathan as he winds down his sabbatical? Audio Mixing and Editing by www.verbell.ltd

Step on into The Boardroom to hear from PSSI’s VP of Strategic Development, Paul Lambert. As a leading food safety company, PSSI is responsible for opening more than half of the food production plants in the US every morning. From labor to chemistry to software to consulting, hear how PSSI found its way into pest control. Their strategic approach involves not just expanding customer numbers but enhancing service capabilities. Do you offer a guarantee as strong as PSSI’s?  Safety plays no small role in this billion dollar enterprise. Balancing their approach between authority with accountability, you’ll hear a lot about PSSI’s team structure. As critical team members, how do PSSI’s field workers collaborate for seamless service?  The Boardroom dives into the strategy behind PSSI’s expansion. Upstream? Downstream? This way? That way? Just can’t blame an optimistic capitalist. Audio Mixing and Editing by www.verbell.ltd

Recession is baked into your cake, Fat Pat. Learn from others’ mistakes. You’ll hear what tax wedge distortions caused owners to do back in ’08-’09. Looking across the service industry, which dynamics and sensitivities will help businesses weather a recession? Step into The Boardroom as Uncle Paul and Fat Pat take on more listener questions, such as where do one-time services fit into the mix, if at all? In regards to valuing a business, following EBITDA, what else is important? What’s not on the P&L that influences top-line revenue quality? What does it cost to buy a customer list versus growing without acquisitions? The focus has shifted from just buying accounts to considering the cash flow stream in recent years, but what perspective should you take as you’re looking to buy 1-3 route businesses? Have issues with you recurring revenue? There’s a 12-step program for that. Audio Mixing and Editing by www.verbell.ltd

From coach to owner and back again, Brian Peters is not the typical CEO. How did Brian go from supporting franchisees at The Dwyer Group (now Neighborly) to spinning-off his residential-exclusive Evergreen Heating & Air? From turning away predictable revenue to insights on the world of franchising, you’ll hear tough decisions Brian has made on the road to optimizing his HVAC business.  As a self-professing non-tradesperson, tune-in to see why Brian and his wife viewing themselves as their own target customer impacts their marketing. How does Evergreen build and maintain high trust with their clients? What do you think about Brian’s Work Huddle? Want Comfort? There’s a Club for that. Audio Mixing and Editing by www.verbell.ltd

Is there a safe answer to the oft-asked but rarely-known “what’s my business worth?” From scaling to an exit strategy to the intricacies of valuation multiples, Paul and Seth tackle a range of listener questions. They even drill down on scaling a million dollar business towards the biggest possible exit. Seth shares his personal thesis with Paul about valuation, but it’s not what you think. What could it be? What about monetizing consumer data, and using big data for marketing campaigns, cross-selling, upselling, and more?  You might miss Fat Pat this week, but you definitely don’t want to miss Paul’s soliloquy on when to buy and when to sell. Audio Mixing and Editing by www.verbell.ltd

The pest control industry has seen an influx of private equity firms, leading to increased competition and often outbidding strategics. How might this heightened competition impact the market dynamics and strategies of the few remaining strategics in the industry? How might this change in dynamics affect the overall industry and the opportunities available to sellers? And on an individual level, how does a deal with private equity impact a seller’s considerations and the process to exit? Also, a listener writes-in about protecting his customer list. What protections should be in place while with a potential buyer, and ultimately what happens if they break that trust? Audio Mixing and Editing by www.verbell.ltd

While together at TPCA’s Pest Expo, Patrick and Seth dive into technicians as salespeople. In the service industry, it’s assumed and expected for techs to sell, right? The two chat through sales, from (pure) selling to upselling, and even having salespeople perform initial services. And what about selling service over the phone? Maybe it’s a question of efficiency, or it may just come down to necessity. Just like not saying sorry, are these universal guidelines?  Put technicians aside for a minute. What about hiring salespeople who are hunters versus lead chasers? Is prior experience as a sales hunter necessary or can it be trained? From job description to interview questions, can managers effectively assess a candidate's potential as a hunter, or is this a model some are better off to avoid? A Sebring Convertible. Really Rob? Audio Mixing and Editing by www.verbell.ltd

Do you pay your salespeople in perpetuity? Peel back the layers to expose the hidden dangers of perpetual payouts. Irregardless of what an acquirer wants, it’s time to take another look at your sales comp plan. The partnering-with-pest-control question continues. In this case, The Boardroom takes another stab at the home inspection question from Episode 131. Do the same rules regarding perpetuity pay for salespeople apply to paying joint venture partners? And should it (and you) stay or should it go? When it comes to joint venture partners and also founders, what challenges and opportunities exist when it comes to transitioning after an exit? And how does it differ between strategics and private equity? Audio Mixing and Editing by www.verbell.ltd

Step on in to hear Carroll Fitzgerald's inspiring journey from a bank examiner to a successful entrepreneur in the landscaping industry. How did his banking background contribute to his thriving side hustle of mowing foreclosed lawns? As time went on, Fitzgerald's portfolio expanded to include landscape, tree care, and irrigation services. Carroll shares insights into the profit margins of these divisions and how they complement each other in his business. Moreover, what did Carroll avoid when exploring new avenues to generate additional revenue? You’ll hear Carroll open up about hiring practices, safety measures, and branding strategies during this engaging discussion. No stone gets left unturned by the end of this casual conversation. Audio Mixing and Editing by www.verbell.ltd