Dan Gordon, CPA
The William Blair/PCO M&A Specialists Monthly Pest Index has released its November report.
According to their joint analysis, the total U.S. pest control index increased 7.2 percent year-over-year in November 2020. The primary driver behind the acceleration in year-over-year growth in November was the residential pest business, which accelerated from 6 percent growth in October to 10 percent growth in November.
The analysis states that the growth was at least partly attributable to favorable weather, as average temperatures across most of the U.S. were warmer relative to last year (and relative to the historical average).
On a sequential basis, the index decreased 11.2 percent from October 2020 in line with typical seasonal trends. This index includes recurring and non-recurring revenue for the residential pest, commercial pest and termite segments. It does not include residential door-to-door companies.
These results mark an acceleration from October (+5 percent), and overall is indicative of continued healthy end-markets across the U.S. pest control industry.
The analysis notes surprise with by the positive November report because of rising COVID-19 cases and resulting business shutdowns that would result in a deceleration in the commercial pest business. In fact, the commercial business accelerated slightly on a year-over-year basis. Stability in commercial pest combined with a strong acceleration in residential pest illustrate the strength of the industry.
Even though the November report shows strength, William Blair Equity Researchers Tim Mulrooney and Sam Kusswurm said in a news release, “We remain cautious regarding the month of December due to mandatory business shutdowns as COVID-19 cases remain elevated; despite this our current models assume pest control organic revenue growth in the fourth quarter is similar to what was reported in the third quarter.”
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.
The post PCO M&A Specialists, William Blair release November report appeared first on Pest Management Professional.
source https://www.mypmp.net/2021/01/05/pco-ma-specialists-william-blair-release-november-report/
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