Quality of Earnings and CFO services for pest control companies
Pest control is valued on recurring revenue and retention. We prove both from the customer data, and quantify the prepaid plans and warranty obligations a buyer inherits.
Talk about a deal Talk about the businessReply within one business day · Fixed fee in writing · No obligation
One of the most consolidated service industries
- Rollins completed 26 acquisitions in 2025, and more than ten private equity platforms are active acquirers. Source
- Recurring and ancillary revenue is more than 80% of Rollins' revenue and grew over 7% organically in 2025, the benchmark buyers compare you to. Source
- Since October 1, 2026, SBA 7(a) acquisitions of $3 million or more need an independent Quality of Earnings, and lenders size the loan on its normalized earnings. The rule explained →
We work with lenders and buyers in Utah, Denver, Phoenix, Dallas-Fort Worth, Boise, Las Vegas, and nationwide.
Recurring revenue %Customer retentionRevenue per routeRevenue per technicianPrice increase realizationRoute density
A route of retained recurring customers is the asset. One-time jobs are discounted.
What buyers and lenders test in a pest control QoE
Recurring vs. one-time
Customer-level split of recurring service, ancillary, and one-time treatments.
Churn and cohorts
Retention by sign-up year from the routing software, not from a summary report.
Prepaid plans
Annual prepayments recorded as revenue when cash arrives are deferred revenue a buyer must service.
Termite warranties
Renewal fees, retreat costs, and claims history behind the warranty obligation.
Sales commissions
Door-to-door and seasonal sales commissions, chargebacks, and accruals.
Licensing and technicians
Licensing, turnover, and whether wages are at market.
Pest control QoE: what's included
- Customer-level recurring revenue and churn analysis
- Deferred revenue on prepaid plans
- Termite warranty obligation review
- Route profitability
- Commission accrual testing
Pest control add-ons
| Each additional legal entity | $2,500 |
Fees by deal size
| Purchase price / EV | QoE fee |
|---|---|
| Main Street QoE: owner-run deals under $1.5M | $7,500 |
| Under $3M | $11,500 (sell-side $9,000) |
| $3M to $4M | $12,500 |
| $4M to $5M | $14,500 |
| $5M to $10M | $19,500 |
| $10M to $15M | from $26,500 |
| Lower middle market & PE add-ons | typically $25,000 to $70,000 |
Larger deals are quoted from revenue, entities, inventory, and report format. Pre-LOI earnings screen $1,950. All fees →
Before an LOI, run the seller's numbers through our free add-back sanity check. Terms like SDE, cash proof, and DSCR are explained in the QoE glossary.
Where pest control owners lose money
- Prepaid plans spent as cash before the service is delivered
- No route-level profitability
- Commission plans that pay on sales that later cancel
- Price increases skipped because no one tracks realization
Priced for your industry
Most pest control companies need an accrual close that handles deferred revenue and commissions correctly, with route profitability on top.
Start with a $2,500 finance diagnostic, credited to your first month. Interim CFO or controller coverage is also available, part time from $10,500/mo or full time.
Books & close
- Monthly bookkeeping and reconciliations
- Accrual close by business day 10
- Monthly financial package
- Quarterly review call
Controller
- Everything in Books & close
- KPI dashboard for your industry
- Payroll, AP, and sales tax oversight
- Quarterly 13-week cash forecast
- Monthly review call
CFO
- Everything in Controller
- Route and technician profitability
- Commission and chargeback accruals
- Annual price increase tracking
- Monthly CFO meeting
Fixed monthly fees, month to month after three months. Day-to-day bookkeeping may be done by trained staff working to our checklists, always with CPA review and sign-off by Edwin van Stam. Talk about the right package →
Pest control engagements Edwin has led
- QoE on a mosquito and pest control company, including recurring revenue and customer retention testing
Includes engagements Edwin performed with prior and affiliated firms. Client names are confidential.
Pest control questions
Does an SBA loan for this kind of acquisition need a QoE?
Under SBA SOP 50 10 8.1, a 7(a) change-of-ownership loan with a business purchase price of $3 million or more needs a Quality of Earnings, and the lender sizes the loan on the QoE's normalized earnings. Below $3 million many lenders still ask for one. Check your deal →
Why do prepaid plans matter in a sale?
The cash was collected but the service is still owed. A buyer either takes a price reduction or a working capital adjustment for it, so it's better to know the number before the LOI.
How do buyers measure retention?
By cohort, from the routing and billing system: what share of customers who started in a given year are still active and paying.
Buying, selling, or running a pest control company?
Buying, financing, or selling? Start with a QoE conversation. Running the business? Start with a finance diagnostic.