The Boardroom Buzz Pest Control Podcast: Recent Episodes
The Boardroom Buzz
The Boardroom Buzz,hosted by Patrick Baldwin and Paul Giannamore, is the go-to resource for cutting-edge insight on strategy, valuation and mergers & acquisitions in the service industry.
Presented by the Potomac Pest Control Group.
Definitely qualified (CFA, CPA, MBA) and without the typical cookie cutter approach, Nick Bartolo of Essential Partners, steps into The Boardroom to chat through the world of wealth management. More than just diversifying assets and ensuring performance, Nick introduces a unique framework to grow and protect one's wealth. With ever-changing economic conditions, what thoughts (and emotions) come to mind as you think about your financial future?
Speaking of emotions, wealth advisors are not only investment guides but act as buffers to provide emotional distance and manage risk. With most advisors acting more like salespeople than genuine investment professionals, how can you make the right choice for your financial journey?
Tune in to hear about “The Money Illusion”, the realities of the 60/40 portfolio strategy (60% stocks, 40% bonds), and the US economy’s historic lack of soft landings.
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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?
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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?
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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.
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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.
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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.
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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.
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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?
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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?
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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?
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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.
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Paul invites Patrick and Seth to discuss FRAXN. Yes, you’ll hear a lot of “Buzz” words, but with Fat Pat as a Co-Founder, what else would you expect?
Patrick and Seth have built not only a management tool but also a great team at FRAXN. With FRAXN, pest control owners gain insights into their business and identify areas for improvement.
Register for The Moneyball Series at fraxn.com/events
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Seth Garber steps into The Boardroom while Paul is away. This time to tackle controlling a phone conversation. Sorry. Say what? From upset customers to prospects, does saying “I’m sorry” convey responsibility? Is Peacemaker Patrick alone here?
Is the customer always right? Do your CSR’s go through 9-degrees of training? It sounds like it’s the perfect opportunity to role play with none other than Fat Pat’s Pest.
Changing course here, what’s the interplay between pest control and the home inspection business? From equity to revenue share to profit share, is there a right answer?
And would it really be an episode with Seth Garber if he didn’t kill a sacred cow?
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When it comes to public relations, there’s a lot to learn. Who better than Mike Harris from Uproar PR (not Puerto Rico) to discuss PR? Take it from the guy that can make drywall exciting. Nothing is guaranteed, but can public relations be held accountable for ROI?
Listen to hear if getting national coverage is bad for a regional business. And when it comes to crisis management, do you really want your technician giving a soundbite to the media? In other words, if you’re in crisis mode, is it too late to plan?
From Running of the Chihuahuas to making the Inc. 5000 list to $50,000 pool cues, step on in for this great discussion on all things PR.
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You first heard about Solitude Lake Management back in Episode 70 with Jay Davis and Jason Pananos, but where (or who) gave Solitude its start? Kevin Tucker steps in to share his backstory and breaks down the basics of lake management.
Surely it’s a recurring service, but is it year-round or seasonal, is it route-based, is there any competition out there? Speaking of competition, you’re going to love to hear Kevin’s two cents on competing on price. From sales and marketing to vendor relationships to managing referrals, Kevin unpacks a lot in this episode.
Seth avoided lake management years ago so his pest techs didn’t become champion fishermen, while Fat Pat suggests the Enterprise Rent-A-Car recruiting model for pest control. What do you think Paul thinks about four-year degrees?
Mommy, Mommy. Look at that man’s back.
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The King of Route Density, Tony Sfreddo, surprised us all in his Potomac TV debut. It’s time to take another shot in “The Great Civil War” compensation discussion. Does compensation affect the bottom line or M&A? Pick a team. Are you Team Tony, Team Patrick, or Team Seth Goes Both Ways?
Both pay structures have their benefits and limitations, but listen for Seth’s creative incentive in this week’s episode.
From paychecks to diabetes, could it be a home run when it comes to CEO’s knowing their front line employees? Speaking of culture, which word du jour will send this conversation down a rabbit trail?
Anxiety fills the air when it comes to the economy, and the employment market is ever-changing. How’s this for a new concept: hiring for life. Would you subscribe to this method?
Hurricane Ian left a wake of destruction in the Ft. Myers area, but there is a great story you don’t want to miss. Listen in on the conversation with PestCo’s Jared Borg and Southwest Florida Pool Pros Chaz Hambling. Big Boardroom Buzz shout out to Infinite Pest’s Jason Woodbury!
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Brett Madden. Problem solver, risk taker, inventor, author, esquire, but don’t call him boss. From problem child to Cigar Aficionado, hear how younger Brett had a gift for observation.
Brett has found his way in and out of both bird and bug businesses. Take note of his takeaways after selling his first bird business.
From sales training to emotional response to listening skills, this week’s guest shares his 40+ years of experience. Now making a run at both Aviaway and Egnyter, this alpha male can’t be stopped.
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You’ve likely heard the term EOS® (Entrepreneurial Operating System). Maybe you read Traction. Heck, maybe you’ve drunk the Kool-Aid. The real question is: Have you read Rocket Fuel? Expert EOS Implementer Mark C Winters teamed up with Traction’s author, Gino Wickman, to produce the groundwork for the top of your accountability chart.
So what, or who, is at the top? Enter the Visionary and Integrator. Mark argues it’s this one-two combo “that will get you more of what you want from your business.” Hear how the two top-level leaders work together to dream-up and execute ideas. From management to strategy to entitlement, this interview covers the gamut of leadership and execution.
You’ve heard Paul mention a few times on The Buzz that the founder is not always the best CEO. What’s Mark’s take on this?
With Patrick and Seth’s new business launching the week of PestWorld, can Patrick extract free advice from Mark in this interview?
So what’s next for you? Join the free Rocket Fuel Community, or check out Rocket Fuel’s Crystallizer Assessment.
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EBIT, EBITA, and EBITDA all sound and look similar, but what sets them apart? USA vs rest-of world; buy-side vs sell-side; there are many views and preferences on the matter, but Paul brings clarity to the complications.
From different brand names in the same market to brand positioning to outsourced capabilities, The Boardroom Buzz welcomes your questions (thebuzz@potomaccompany.com).
Don’t miss the literal million dollar question: with all of this capital pouring into pest acquisitions, what does it mean for non-sellers?
Paul gives his first-hand accounts of both the infrastructure (or lack thereof) in post-Hurricane Fiona Puerto Rico and Europe’s financial predicament. Which is worse? You be the judge.
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Paul Giannamore and behind-the-scenes Producer, Dylan Seals discuss the past, present, and future of The Boardroom Buzz as well as the introduction of POTOMAC | TV, a YouTube Channel that seeks to delight, entertain and inform Service Industry owners and their families.
Watch now at WWW.POTOMAC.TV
Produced by Verbell.Ltd
Pest control in Europe is different, but how? Futura Germany CEO Daniel Schröer steps in to share the perspective from his side of The Pond. Both Daniel and his business partner, Oliver Klute, are second generation bug guys. It must’ve been their destiny to develop and distribute the world’s first digital mousetrap.
Think you’re just too white and nerdy? Listen to how Futura Germany’s tech differs from Episode 74’s Ronen and Ethan’s.
There is more pressure to be green in Europe, in fact, the IPM pyramid takes on a new shape. Is this interview the beginning of getting on the same page for “green” in the industry? Beyond virtue signaling with green pest, what mindset must you need to succeed with green tech?
Winter is coming. The Boardroom conversation steers towards remote work, inflation, sanctions, and energy in this Europe-centric chat.
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Real estate and termite-less businesses are at the top of the listeners’ list. Paul makes time for a few listener questions between four closings and his across-the-Atlantic “vacation”.
Recurring will always be main stage, but is there room for expanded services to play second fiddle? Sure, you can make the argument that pests have evolved, but how has the industry evolved over the last 20 years? It’s interesting to hear how the strategics view add-on services versus private equity.
With the end of ’22 in sight, what’s in store for the economy and the M&A market? In terms of bend but not break, will the economy be that lucky?
If Paul had a full-drip, Instagram-worthy platitude, what would it be?
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Dress in your best socks and sandals because class is in session. Welcome @cassiethebugdoc aka the face of Terminix into The Boardroom.
“Nerd” is a term of endearment for this not-your-everyday-entomologist. Cassie Krejci takes an approachable expert approach as she oversees training, safety, and compliance for Terminix’s over 11,400 employees. From her days in technical services to her present day role as the Director of Technical Services, she brings it in this episode that has its fair share of nerdy and non-nerdy moments.
At what point does it make sense for you to add technical services onto your roster? Will Seth Garber’s thoughts on technical expertise get him kicked out of entomology conferences?
Remember, there can only be one company that is first in the phonebook ;)
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Years before Boardroom Buzz fans celebrated their 100th episode, Paul participated as a guinea pig back in his Cornell college days. It turns out the research became of one psychology’s most recognized studies, the Dunning-Kruger effect. Is there a better way to celebrate 100 episodes than sitting down with Dunning-Kruger’s David Dunning PhD?
Maybe you’ve made it this far in life without taking a psychology class. Take a seat because class is in session. From self-awareness to intellectual humility, it’s time to re-think things. Seth Garber joins Paul and Patrick to discuss the depth of Dr. Dunning’s infamous research to his current day work. Cutting class can be cool, but make sure you don’t skip this one.
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Welcome Gary Findley into The Boardroom this week. Literally. Gary steps into Patrick’s office for this sit-down on the ins and outs of franchising.
Hear how this country boy’s gritty spirit grew one of the world’s largest franchises. Don’t forget to add Undercover Boss and author to Gary’s list of accolades. From fitness to service businesses and a lot of concepts in between, let’s get his take on what makes for a good franchise business.
Welcome back Episode 84’s Seth Garber to give some extra color on this good ol’ boy conversation with The Redneck CEO.
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Andrea Brubaker takes us back to earlier days at Triple S. Triple S, you say? Yes, Episode 5 Tony Sfreddo’s Triple S. From shame to shamelessly fabulous, Andrea breaks down prospecting, hiring, compensation and more in the sales-centric chat.
Who knew you could make hot water cool again? Check out what she’s up to present day before hitting rewind on her sales career.
Don’t miss Paul’s current take on the reoccurring residential vs commercial debate and Patrick’s Texas Pest Expo takeaways.
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They say that history repeats itself, but where (or when) do we look back to see what’s in store for this economic outlook? Pest control thrived in 2020. Should a similar outcome be expected for this economic cycle? Help us welcome back Wall Street equity analyst Jamie Clement for another chat in The Boardroom.
With a curative revenue model, where does pest control fit into the budget as gas and groceries continue to rise? The election, energy, and ESG find their way into this week’s discussion.
Predictions were made on a Terminix (then ServiceMaster) takeover back in “JBug’s” Episode 6. Let’s see how the predictions panned out. Also, tune in to hear how Rollins is staged for future M&A participation.
And on a literal side note, will Patrick be making his maiden voyage to a tattoo parlor?
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
History repeats itself. The economy is plagued with mispriced assets, but what’s next? Tune in to hear which era paints a dismal future.
Paul places his bet on private equity for the year, and it’s a big target. Who’s side of the bet are you taking?
Before pressing play, ask yourself: Does money flow in and out of markets?
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
From Episode 24 to Supernova to Bubble Trouble, you’ve seen and heard from David Billingsly, but it’s time to put Coach Dave in the hot seat. With a glass (or two) of Macallen in hand, David opens up about his career and what makes him tick.
While David and his team identified and developed leaders, quick growth presented its own set of problems. From bringing in business coaches to building leadership programs, this Boardroom chat dives into the dynamics of personal development. What boundaries need to exist for healthy coaching relationships?
It’s time to suit up. Free Agent David is gearing up to help others step up their game.
Terms not expected to ever hear on The Boardroom Buzz: unicorns and shock collars.
Watch now
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Episode Title and Description written by Patrick Baldman.
Additional Editing by Garrett Ware.
Potomac Pest Control Group: https://www.potomacpestcontrol.com/
MUST READ before you watch this episode… Instead of providing you a brief overview about Paul’s experience with private equity, capital structure, the competitive process to raising debt, and the ever-changing dynamics of the M&A market, this week you’re going to play a game. Every time that you hear Paul say “Fat Pat”, take a drink.
Watch on YouTube
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
Potomac Pest Control Group: potomacpestcontrol.com
You don’t want to miss this conversation with Byron Gifford. There are grandaddies of door-to-door, but there’s only one “great grandaddy”. Even before Eclipse, Byron laced up his tennies at SalesNet. See for yourselves; he’s older than he looks. Byron has more than his fair share of hard times. After running (yes, literally running) doors his second summer, the anticipated $60k backend came up really short. Lyme disease goes under the microscope in this memorable episode. Through financial and physical trials, Byron has found a way to overcome.
Pointe Pest was his baby. As you can imagine, in an interview filled with ups and downs, Pointe hit rock bottom for Byron. Based on personal experience, Byron shares his opinion on the looming disaster for leveraged D2D businesses. Forced to get out of pest control for a bit, Byron continued to sell in other industries. Pupil turned principal of the School of Hard Knocks, Byron put his money on “the turtle”, and returned to the pest industry.
From recruiting with projectors, pizza, and paystubs to leveraging sub-, senior-, and family- debt, Byron looks back at the D2D landscape over the years in this candid sit-down. Having just sold a couple Evergreen Pest Control branches in Colorado to EnviroPest an Anticimex platform, you know that there’s light at the end of the tunnel. Now stronger for surviving tough experiences, this conversation goes deep on mindset, success, and overcoming.
Quick question. If Paul got to choose the location for his mission, would it be Bangkok or Tijuana?
Watch now on YouTube
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Live Event, please visit bubbletrouble2022.com
Potomac Pest Control Group: potomacpestcontrol.com
Right Time
Take a stroll down memory lane as Frank and Cindy Miller step into the San Juan Boardroom. It’s clear that opposites attract as you hear about their background going back to when they met in the ‘60s. The couple open up about the difficulties they faced together - over the decades as well as recent history. Stay tuned as Cindy opens up about how things have changed over the years for women in the industry.
Right Place
The two transplanted out of New York into Florida, and seized an opportunity in an industry new to them. Without giving too much away, they credit their success to the…
Right People
Frank and Cindy sold Impact Pest Elimination to Turner Pest, an Anticimex platform, in the fourth quarter of 2021. The recently retired duo give credit to Arab - where they got their start - and the people that they surrounded themselves with - Gary Cole, Tom Wisdo, and Donnie Karcher - and those that were born into the business and had to work their way up - Leanne Prewitt and Kristine Krauss. Their daughters don’t fit the SOB (sons of businessmen) mold that Paul frequently finds. There is a lot to learn as they talk about their four branches (and four corporations) and how they thrived on inner-company competition. Starting with Customer #1 many times over, Frank and Cindy share their secret to success in this memorable sit-down.
On today’s menu: PB&J on toast as Frank adds, “would you like a warm-up on your coffee? Hey! Keep your hands to yourself!”
Watch now on YouTube
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Live Event, please visit bubbletrouble2022.com
Potomac Pest Control Group: potomacpestcontrol.com
Join us for a new segment of The Boardroom Buzz where Paul gives direct market commentary as well as answers your questions.
Please write in your questions to thebuzz@potomaccompany.com
Jay Keating finds himself at the helm as CEO of PestCo Holdings, a Thompson Street Capital Partners portfolio company. He returns to The Boardroom to dive deeper into his background and what’s in store for PestCo. Give credit to All America Sears’ Chuck Steinmetz for finding Jay, and now Jeff Aiello for bringing him back. Tune in to see how Jay views what’s changed as he returns to the industry.
With a blank slate and a few deals in the books, Jay is looking to build his team. He has already brought on leaders through acquisition, but what leadership gaps exist & how will he fill them? It’ll be interesting to watch from the outside looking in as PestCo picks up more brands, geography, and capabilities as they bulk-up at a rapid clip.
The industry has seen a lot of private equity try to compete. Listen in as Jay discusses how will PestCo will differentiate itself. Paul prods Jay if PestCo could be the right exit strategy for founders that want to completely exit.
By the numbers: $1.3B fund, 90 days as CEO, Top 25 size company, 4 companies acquired via 3 deals. Once a year service? TBD.
Watch it now on YouTube
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
Sign up for Bubble Trouble, our May 4th Live Event.
Potomac Pest Control Group: https://www.potomacpestcontrol.com/
Join us for a new segment of The Boardroom Buzz where Paul gives direct market commentary as well as answers your questions.
Please write in your questions to thebuzz@potomaccompany.com
You first heard about Chicago-based Pointe Pest in Episode 15 with Tim Mulrooney. Tim gave Pointe props on his annual-recurring research quest. Now 75 episodes ago, was selling even a consideration for Jared Borg and his partner, Kyle Woodbury?
Rewind 16 years (and $20M of annual revenue). How did Pointe get its start? Hear how Jared, Kyle, and Aaron Allred knew sales from their shared days at Eclipse, but Jared admits they didn’t know how to run a business. Somewhere along the way, they found themselves operating a DC-based Green Pest as well. Jared shares how his business evolved, including buying-out mentor and now billionaire Aaron Allred along the way.
An in-house tech developer, SQL, BI… is this a tech company that happens to do pest control? Jared saw that business was going flat so it was time to go cutting edge. That doesn’t mean he needed to reinvent the wheel. In fact, his 5-Star Service protocol was “stolen”. You’ll hear about what works and what doesn’t work when it comes to displaying data for all employees to see. Jared is quick to share his experience with how much data is too much and what shouldn’t be gamified. In fact, Jared doesn’t bat an eye before rattling off his top 3 or 4 KPIs.
Surviving this recent sell-side process with a 90-day fiancé theme, Jared shares how his experience differed from a more common 100% buy-out with a strategic buyer. In his new role at PestCo, a portfolio company of Thompson Street Capital Partners, strategy is the real buzz in this Boardroom chat. Paul and Jared dig into trusting others’ input, growth strategy, and replacing yourself in this real-world session.
Take Jared’s advice on making hard decisions and getting out of the way. It’s his life motto though that’s really going to resonate with you.
Watch it now on YouTube
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Live Event, send an email to... events@potomaccompany.com
Potomac Pest Control Group: https://www.potomacpestcontrol.com/
Join us for a new segment of The Boardroom Buzz where Paul gives direct market commentary as well as answers your questions.
Feel free to write in your questions to thebuzz@potomaccompany.com
Jared Borg and Jay Keating step into The San Juan Boardroom as the ink dries on their new business relationship. It’s a tale of two pest control backgrounds converging in this week’s San Juan Session. The two will get their own airtime in the future, but for now, dive into their background and hear how they arrived in The Boardroom.
Enter Jay Keating, CEO of PestCo, a new Thompson Street Capital Partners (TSCP) business. Jay first earned his stripes working for the legendary Chuck Steinmetz as a service technician at All America Termite & Pest Control aka Sears Pest. Now with 25 years in pest control, Jay returns to the industry he loves, but this time with a massive checkbook.
Let’s take a step back. Who is TSCP? Paul knows this too well. Private equity comes knocking to get into pest. This time persistence pays off. It took a lot more than persistence though. St. Louis-based TSCP’s Jeff Aiello put his money where his mouth is. Jeff recruited Jay and one day looking back, they’ll say the rest is history. For now, PestCo has access to a $1.3 billion fund, and in less than six months and three platforms later, PestCo has in excess of $40 million in annual revenue.
Enter Jared Borg. Hear how Jared and his business partner, Kyle Woodbury, grew Chicago-based Pointe Pest and DC-based Green Pest. Selling wasn’t in Jared’s playbook, at least not at 41-years old. He’s not ready to sit around and do nothing. The dust hasn’t settled yet as Jared gives his perspective on selling to strategics versus private equity. Hear his excitement as he now has “a blank check to go grow and grow.”
PestCo now has three platforms in three areas. So what’s next? What’s PestCo’s growth strategy? Jared’s itching to know so he can (buy and) build the marketing stool.
You’ll hear the guests agree that it’s all about the front-line workers; definitely said or shown in two different ways. One guest just happens to deliver booze.
The question you haven’t asked yet. Can Jared really sell and service Seth Garber’s meta real estate? … stay tuned.
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Virtual Event, send an email to... events@potomaccompany.com
Potomac Pest Control Group: https://www.potomacpestcontrol.com/
There are countless lessons that second generation-owner David Clark learned from his dad. His dad preaching and modeling “sticktoitiveness” won’t soon be forgotten. Hear how David and his dad balanced making decisions versus making plans.
Clark’s Termite & Pest Control grew from $250k in annual revenue to $20M before selling in 2021. Between builders and realtors, David scaled his way to one of the largest pest control companies in the country. David distills prioritizing people and processes to reach success. He even gets in the weeds on paperwork and mistakes that made along the way. From pretreats to lawn care, Clark’s evolved over the years. Their upward progression helped them not only survive, but grow through the housing crisis.
The conversation looks back on the third-generation business, and its climb to the top. David is quick to credit the Clark’s team for their success. He even shares a quick lesson on marketing messaging that you don’t want to miss.
Where else can you learn life lessons about repoing repos? Step back in for another San Juan Session to hear how David and his family business struggled on their way to the top.
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Virtual Event, send an email to... events@potomaccompany.com
Potomac Pest Control Group: https://www.potomacpestcontrol.com/
The Boardroom is so glad you decided to join us for this communication session.
Chris Eby avoided the steady diet of government cheese, by jumping out of financial services and into pest control. Redirected from getting a law degree, he wanted to get the world by the tail, and wrap it around, and put it in his pocket!
He’s not here to “come down on you”, but respect has to be earned. Hear how Chris backdoored his way into the door to door industry. You don’t miss his approach to sales on the back porch either.
There are other names for knocking, such as crack, ice, boom, pow. Call it what you want, but cloning knocks and scripts can only get you so far. You need confidence on the doors, or you’re not gonna amount to Jack Squat!
Bundles are a great idea, but I can’t see real good…is that Bill Shakespeare over there? Coming from a guy that looks like Santa’s evil twin, he admits the mistakes of his bundle-only approach.
Reps are overpaid across the door-knocking industry. You can take a Moneyball approach…I wish you could just shut your big yapper!
We’re gonna be buddies! We’re gonna be pals! And we’re gonna pay your front line workers and managers! Chris expanded his company’s service offerings, but there came a point in which it made sense to partner with allied industries. He goes into detail about his allied partner incentives in this San Juan Boardroom chat.
The nicest, shrewd businessman you’ll meet already has plans for the future. He’s working on making a lasting legacy which starts with living in a lambo, down by the river.
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Virtual Event, send an email to... events@potomaccompany.com
Potomac Pest Control Group: https://www.potomacpestcontrol.com/
Step back into The Boardroom for the second round of the San Juan sessions. The cameras rolled as Paul brought clients through Puerto Rico for some R&R. Subscribe to The Boardroom Buzz on YouTube to access these upcoming client sit-downs.
The current market volatility on top of the Rentokil / Terminix deal brings a lot of unknown to the M&A market. Paul also makes the rounds with updates on
Anticimex (including Jarl Dahlfors and David Billingsly), Rentokil, Terminix, and private equity.
Black Bear’s service area was home to Chip & Joanna’s Magnolia Mecca as well as a beaver-monikered 200+ gas pump megaplex. While those destinations get all the limelight, it’s hard to quantify the market dynamics surrounding Black Bear just six months ago.
The pest industry has benefitted from multiple expansion in recent years. What’s next? Stay tuned for Potomac’s May event, Bubble Trouble.
TL;DR if you were thinking about selling soon, then it’s time to accelerate your plans
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Additional Editing by Garrett Ware.
To sign up for Bubble Trouble, our May 4th Virtual Event, email events@potomaccompany.com
Harold was Zod
Dad of Todd
Pest Jest got made
to lead the trade
adam's life cycle
can find no rival
Harold plus Don
a name they gave up on
rat bait in mixers
had crazy killers
Todd pissed his pants
for rats not ants
rebuild your system
his letters told them
after pest pac scorn
a blu star was born
Associated meeting
best practices bring
Adam-ize his learning
incentives incurring
glad you stepped in
welcome to canon
but four hours later
concerns mother nature
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Seth Garber’s first venture into the pest control industry lasted four years before selling his Florida-based business. It may be hard to retire from pest control at age 31. It’s even harder to stay away. Seth has already built quite the resume for 41-years young. Finding himself back in pest control, he brings his experience from both health care and high tech.
Seth got sucked back into the industry as a consultant. The three chat about the various consulting methodologies and where Seth sits on the playbook-scale. Now that Seth has boomeranged his way back into pest control, Paul wants to know if Seth sees it more or less competitive now than before. It’s ok for CEO’s to make bad decisions, but is there a tell-tale sign of what makes for a bad CEO?
Pest Daily started as a passion project, but hear about its quick growth trajectory and the variety of courses it offers. What started as leaving a legacy, has grown into an industry leader for education.
Maybe you sensed this coming, technology enters The Boardroom discussion. Is there a place in the industry for a gig economy? Speaking of gig economy, Seth shares his tested opinion on customer touchpoints.
Stay tuned for a set of soliloquies that cover the gamut from self-development to competition to sacred cows. Maybe next time Seth visits The Boardroom, it’ll be in SethGarberLand’s metaverse.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Inquiring minds want to know (Patrick included) what Paul’s predictions are for M&A in 2022, especially in light of the Rentokil / Terminix deal. Place your bets people. No one would have predicted four consecutive private equity deals in a row to kick off Potomac’s year.
Before stepping in with John Roberts PhD, the two discuss the macro market, and even its effects on BrightView’s earnings report.
First recommended to Paul by now Six Flags CEO Selim Bassoul, The Modern Firm, earned The Economist’s business book of the year in 2004.
“Nobody, it can now be said, is fully fit to run a modern firm until they have read The Modern Firm” - The Economist
There are various ways to modify performance. Monetary incentives through culture. Not the culture that looks like sticking mission and vision statements on the wall. Take a look at the culture of BP as an example, especially in light of Amoco post-integration. Going deeper on culture, Paul argues that culture stems from the founder’s decisions. The conversation takes a turn into a developing country case study. Now it looks like Patrick has his work cut out for him. When is the last time you spoke about path dependence within a culture?
Paul adds “Strategy” to John’s “People-Architecture-Routines-Culture”, to help him analyze businesses through his S-P-A-R-C spectacles. Are there alternatives to monetary incentives?
Paul invites John to critique his thought process on incentives. Think about your best and worst performers. John gives great insight on pulling up your laggard’s performance. Paul asks about balanced incentives. Join the three in The Boardroom to see if you’re incentivizing for A while hoping for B.
Paul is making the entire interview available to his clients. Shoot an email to thebuzz@potomaccompany.com for access.
“If it’s not S-P-A-R-C, then it’s P-O-L-E….and yes, there is a benchmark for hookers on a P&L…Mom?”
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
It’s time for Paul and Patrick to catch up on listeners’ (and Patrick’s) questions. Episode 80 seems like yesterday, but there’s an update to give on the sentiments surrounding the Rentokil / Terminix deal. Paul lays out his reasons why Terminix franchisees could have a banner exit on their hands.
One question on yellow and red flags in financial statements goes down a rabbit’s trail of following trends, benchmarking (Ep 24 with Jarl Dahlfors), getting granular with your chart of accounts (Ep 32 with Doug Stevenson), and managing your business as if you’re going to sell. It’s not too late to go back and give Ep 26 a listen and get your free Chart of Accounts template.
If you’re asking yourself about what an acquirer would say about your write-offs, Paul brings clarity to the confusion. Do you get a pandemic pass for your production? Terminix didn’t according to Tim’s recent episode.
In a different fashion than the self-conscious drop your drawers financial exam, Patrick learns about Paul’s 12-month checkup with acquirers. How do the acquirers stack up against the forward projections in the Potomac CIMs?
Don’t miss out on overcompensating employees, trademarks, marketing multi-branch offices, KPIs not found on financial statements, and the “newest edition to our service”.
You’re going to want to get your hands on Potomac’s upcoming Valuation Report. Make sure your sign up for The Commentary at potomacpest.com
Almost forgot…. in true Boardroom Buzz fashion, the episode has its own disclaimer. It may be about tax, or it may be about expenses that don’t need to go on the credit card.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Bill Hoffman breaks down his buy-side basics in the Boardroom. Paul and Bill first met in Philly 15 years ago. Since then, Hoffman’s Exterminating has grown into a serious northeast contender.
While the big money buys up businesses, Bill shares his tips on making friends with neighborhood competitors. (Keyword: friends.) That’s the key that unlocked Bill’s now 8-figure business.
With 15 acquisitions in the last 6 years, he has experience with integration, payroll, and the growth beyond the acquisition. Hear his take on deal structure, financing, and how he keeps his Brady Bunch business happy.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
It was beginning to look a lot like Christmas for Tim, at least until the news broke of Rentokil making a move to acquire Terminix. Join in as William Blair’s Group Head of Global Services Equity Research Analyst Tim Mulrooney returns to The Boardroom. Speculation abounds in this $7.5 billion deal.
In this deal that stretches Across the Pond, what needs to get carved-out and why? There is value to unlock in this deal, and it sounds like the accretion estimates are conservative. There are hidden synergies, including the Terminix turnaround surrounding termite claims and employee retention. Rentokil can knock out one of their competitors at the M&A table while picking up a network of 360 branches.
While over in Memphis, it’s hard to turn down a 50% upside. With the recent antitrust precedence, it sounds like Terminix has their work cut out for them to get to their grand finale at the closing table. Terminix has to look at how they’re going to carve out their national account business to pass muster with the DOJ and the SEC. There is a $245 million threshold, but cutting out that revenue is easier said than done. Place your bets on the buyer for “Copesan 2.0”.
There is too much to list here, but you won’t be disappointed as The Boardroom chats about deal risk spread, Terminix franchisees, auction theory, price discovery, and William Blair ratings. Connect with Tim by email at tmulrooney@williamblair.com. You’ve read this far so you too can put up with Patrick’s “low thinking”.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Grab a beverage, and join the Boardroom conversation about boardroom conversations. John Byrne, former editor at both Fast Company and BusinessWeek, goes into detail on the three collaborative works he did with businessmen Morton Mandel, Jack Welch, and John Scully. The conversation kicks off into his immersive work with Mandel in the book “It’s All About Who”. It’s a book that keeps on giving, or at least gifting. From Paul, that is.
From befriending the books’ subjects to his hours spent in the archives, John dives into the process of distilling their success. He even shares the unquenchable trait he found between Mandel, Welch, Scully, and other successful businesspeople.
This chat pulls in lessons from outside the route-based service industry. From family business to ranking employees to implementing a factbook system, there is a lot to learn from this accomplished author, editor, and entrepreneur.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Peter Schiff argued for gold while denying all things Bitcoin in Episode 56. The Buzz makes its way back to the same table but this time for the flip side of the coin with world-renowned cryptocurrency expert Teeka Tiwari.
Teeka begins by admitting his skeptical start before diving into crypto. With his Wall Street roots, he saw this “magic internet money in 2011” as a flash in the pan. Before diving into Bitcoin, Ethereum, and the myriad of alt coins, Teeka breaks down the blockchain basics. He recalls his Road to Damascus experience when he knew Bitcoin was here to stay.
Bitcoin as reserve asset and a speculative asset - is it possible to check both boxes? Hear how Bitcoin compares to gold as Teeka shares his opinion on going back to the gold standard.
Watch this San Juan Session in 4K on YouTube.
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Watch Here
You couldn’t ask for better weather as the duo enjoy Cuban cigars on Paul’s balcony. Paul makes time to chat as his firm works on closing out a banner year. Hop on over to YouTube, and watch Paul and Patrick reminisce on 2021 and look ahead to 2022. Merry Christmas from The Boardroom Buzz!
Filmed, Edited, and Mixed by Dylan Seals of www.Verbell.Ltd
Additional Videography by Gabriel Gonzalez.
Link To Video Episode
You know there’s going to be good information when the interview starts with a legal disclaimer. Phil Tortorich sits down poolside with Paul and Patrick in The Boardroom’s first San Juan Session. This interview is the prelude to Paul and his wife sitting down with Phil for Paul’s personal planning.
Phil made his Boardroom debut in Episode 73. Phil steps into the outdoor Boardroom to respond to a listener’s question about the pros and cons of an LLC taxed as a S-Corp vs being taxed as a partnership. The three also discuss The State and Local Tax (SALT) Deduction for 2021, the likelihood of retroactive capital gains taxes, captive insurance, and asset protection. This interview dives into more details on trusts and personal effects. Hear how a trust is used to gift shares to the next generation. Pull up a lounge chair, and join us on YouTube for this pool patio interview.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
You can sprinkle pixie dust and hold your breath, or you can build a system to deliver a world-class experience for your customers. Stop waiting to exhale and step into The Boardroom with our guest Vance Morris. Vance shares his best practices for service businesses from his time at Disney operations. He’s going to clue you in on ways to set yourself apart from your competition. Hear how ownership mentality and employee engagement differ from Vance’s time while working with The Mouse.
You’ve thought about direct mail to grow your top line but have you tested it? Feel free to test it out at your expense, or learn from others’ experience in this Boardroom interview.
Lights. Camera. Action. The service industry puts all employees on stage. One bad act can shine a bad light on your business. It’s time to create a script for your technicians to follow. Are you struggling with scaling up-sells? It’s time to put the law of reciprocity to work.
From implementing a simplified mission to establishing a What-How-Why for each of your actors, this interview is full of tangible takeaways.
Disnify your business. Grab a copy of Vance’s book at deliverservicenow.com
Roll the credits. Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
The locker room meets The Boardroom as Paul and Patrick visit with the newly appointed president of Nisus, Lee Barrett. It wasn’t just any ordinary agent that got Lee his start in pest control. The franchise leader pushed his West Coast way forward from the mailroom at US Borax to now president at Nisus. With 30 years under his belt in the industry, which type of coach is now at the helm of Team Nisus?
Before running Nisus, Lee was reading eyes and patiently following his coach’s system. What did that teach him about sales and execution? There is a new game plan in place, and it calls for a real team effort. Lee opens up about adversity, the sport of business, and more in this motivating interview. Run for 4 yards.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Paul makes a trip to the Holy Land, but has he found the Holy Grail? Tel Aviv’s high-tech hub creates a new generation of mousetraps. Paul visits with Ronen Amichai and Ethan Vickery of PestOptix to see how future technology is now a reality. The pair of tech-forward thinkers go all-in on digital to change the industry.
Pest control is full of countless creatures, but the most reliable is the creature of habit. Has PestOptix created the disruptive monster that non-adopters fear? Imagine the day you’re not shelling out cash to check empty stations.
This one of a kind technology is ahead of what Anticimex and Rentokil deploy. Could this be your opportunity to stay ahead of the larger players? Ronen and Ethan created a camera-enabled, AI-driven system to keep you ahead of the competition. As you’ll hear, you can stay ahead of bad press with 24/7 monitoring. Ronen shares his customer interactions about transparency, thresholds, privacy, pricing, and service frequency.
As costs continue to go down, this technology also finds its home in the residential side of the business. Alexa, is there a rat in the house?
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Paul claims that this is “one of the most valuable sessions we have done thus far, if not the most valuable session, when it comes to very, very important estate planning issues.” Before jumping into estates and trusts with attorney Phil Tortorich, The Boardroom conversation begins with the pros and cons of various entity structures. Paul recalls witnessing a debate between Phil and Paul’s CPA regarding flexibility and self-employment tax. How far into this discussion before regret sets-in and conversion begins?
Level-up your estate plan… before the government does it on your behalf. When it comes to trusts and planning, which level can (should) you achieve? When a domestic trust isn’t enough, what options exist with higher levels of sophistication?
Trusts made the news with the recent release of The Pandora Papers, including Walmart’s Walton’s and Nike’s Phil Knight. Other than using trusts, what other common traits has Phil witnessed in his 20+ year practice working with ultra high net worth individuals?
Tax changes are on the horizon, and so is a follow-up sit-down with Phil. Make sure to RSVP your spot by emailing a question that you’d be proud of to events@potomaccompany.com
While we wish you a Happy Thanksgiving, don’t be a turkey. Leave a review on Apple Podcasts here.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
If you’re not too busy breaking fire boards or walking on crushed glass, step into The Boardroom with Mike Agugliaro. On his own at age 15, Mike chose the martial arts and vocational school combo. Follow Mike’s path scaling from electrician to entrepreneur to exits. Exits, yes, plural.
There were times when Mike and his business partner, Rob, fought for survival. Hear how together they chose the path to not quit. Mike’s formula of sales, marketing, and leadership should help bring clarity to your business.
With more than an ordinary reputation, Mike grew his staff (that would fight to the death for him) without negotiating compensation. Is the secret in how he aligned himself with his staff’s personal goals?
Everyone has their own opinions on commercial vs residential and single vs many service offerings. Mike will open your mind with his reasons. Speaking of mind… Mike is a learner, a teacher, and an author. Get schooled on his take on ‘mindset’.
The Italian Grandmaster's serve-first philosophy grew Gold Medal to best of class service and also birthed CEO Warrior. Born out of a Buddha moment, CEO Warrior brought CEOs together and gave them the path to conquer fear and change their destiny. Don’t miss Mike’s philosophy of a leader’s #1 job. As the leader of his family, Mike was intentional on his family’s involvement in business and modeled hard work with a front row seat.
Don’t tap-out on this interview. How many more service vehicles are you ordering?
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
"How do you best sabotage the wealth building exercise of growing a business?" sounds so gloom and doom. It could be re-stated "how do you increase the value of your business?" for the eternal optimists out there. It's not often that Patrick gets away with giving Paul homework.
In no particular order, The Boardroom duo makes it through a top seven list. Now it's time for you to do your homework. Email thebuzz@potomaccompany.com with your prioritized list (recurring revenue, pricing, incentive structure, service offerings, density, organizational chart, and understanding profitability). For extra credit, include the number of Episode 70 - Jay & Jason references.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Class is in session. Log this one in your planner as a case study on search funds. Harvard Business School classmates, Jay Davis and Jason Pananos, left their successful careers behind to find search funds, or maybe, search funds found them.
One minor (major) problem. The year is 2008. Armed with patient investors and critical criteria, the determined duo found themselves in pest control, specifically vector control. Their entry with Vector Disease Control International got the search fund party started, but hear how shortly thereafter they made a splash into lake management.
Fourteen acquisitions later, the HBS grads were not bashful about their buy-side bravery. Don’t be fooled though. Although 'acquisition' was in their name (Vector Disease Acquisition), they stress a more critical skill during this interview.
You won’t believe it until you hear it, but don’t miss out on some real sage advice from a pair of forty year olds. Step into this Boardroom conversation to hear how these students turned lecturers and businessmen turned investors found their way to a 2-platform exit with Rentokil.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
A listener’s economic question kicks off this episode although Patrick admits to his own self-interest. Following the listener’s follow-up research on Supernova, the signals and signs are out there, but what are they? The conversation inside The Boardroom turns to investing and the economy. As you can imagine, this episode earns its fair share of financial disclaimers.
Paul chooses to self-manage his portfolio, but that begs the questions of how and why. Diversification goes a lot further than choosing multiple asset classes. Paul shares his investing mindset that goes beyond increasing wealth and into preservation. From crypto to commodities, there are various playbooks out there, but is there one that can solve for inflation? Paul can’t predict the future, but he does see trends reversing. Has anyone ever accused Paul of wearing rose colored glasses? He shares his take on massive demographic shifts and the very real threats of inflation. Tax receipts are at an all-time high, but they still can’t keep up with the US’s debt to GDP ratio. How will the US government navigate out of this extreme liability? Negative forward returns are on the horizon. There can be a variety of extreme outcomes. Take note. Ignorance will not excuse poor preparation.
While it may or may not change who you choose to follow on Instagram, it’s time to sign off with one last reminder that Paul, Patrick, and The Boardroom Buzz disclaim all liability.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Paul goes unplugged in this interview. Literally. Maybe this was part of Paul’s plan to get Allan back for another episode, but the show must go on.
This isn't an ivory tower novel. What was the powering force for Allan writing The 1-Page Marketing Plan? You’ll be glad that Allan wrote a book to himself but shared it with everyone. Paul name drops some of the biggest names in direct response marketing. Pop quiz, Allan…
Shots fired. Allan says, "Don’t start with why. Start with buy." From attribution to target market, The Boardroom Buzz guest gives great advice on marketing for service businesses. Would it really be a Boardroom Buzz episode without mentioning pricing? Allan even gives his recent experience shopping for a plumber… and from there, a 1-star idea is born.
You would clone your customers (at least most of them), but how can you scale your business through word of mouth marketing? “Orchestrating and Stimulating Referrals” gets a chapter all to itself. Implementing the template will more than pay for your copy of Allan’s book.
Kohl’s finds a way to set a hook in the Baldwin budget. Have you implemented a voucher into your marketing strategy?
Patrick wasn’t expecting to find a derivative of The Pareto Principle (the 80/20 Rule) in Allan’s “marketing” book. There’s a lot more than marketing in this bestseller. High five for this week’s guest as he shares his take on entrepreneurship as a tool for social good.
If you get to listen to 1% of this episode, then listen to the angel investor bit ;)
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Guest Bryan Dodge kicks off the interview as the host as you’ll hear him interviewing Paul. Young Paul was an entrepreneur in the… farming industry?!? From Cornell to investment banking to private equity, Paul opens up about his world traveling backstory with Bryan.
It must be a prank when McGraw-Hill, one of the largest publishers in the world, calls you. It’s a good thing Bryan answered that call (twice) because he went on to write and publish The Good Life Rules in 2009. Shortly thereafter, Patrick received it as a gift, and you can say the rest is history. Although Bryan denies it, the book had an impact on Patrick’s life. It feels like today’s society requires formal education. It's a stark contrast as you'll hear about getting a job vs. making a fortune.
The Boardroom conversation turns to Bryan's more recent book, The Principles of an Unstoppable Family Business. Bryan shares how the faces are different but the problems are the same, including overpaying family members.
There are lots of nuggets in this interview. Take notes, and as you’ll hear, don’t be afraid to ask for help.
Don’t forget to pick up a free copy of one of Bryan’s books by emailing bryan@bryandodge.com & cc: thebuzz@potomaccompany.com (Don’t forget to include your shipping address)
Now, grab yourself a drink, give your grandkids a Red Bull, and send in your questions for Bryan’s Bonus Buzz.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
That’s a wrap on the Atlanta Sessions, but Paul is already heading back to Atlanta for a celebratory dinner. Congrats to Anticimex and Pestban!
Patrick knows the emotions involved in selling a business. Imagine the feeling when your out-of-the-know acquirer calls the office line.
There is more chatter about private equity. Is this a tell-tale sign of the bubble? What scenarios make sense for private equity to win deals? Can private equity pay as much as acquirers? Paul provides answers on why and why now.
You can’t miss Paul citing his investment banking business mentor’s 2003 speech. Do you find yourself nodding to these signs of the times?
Paul sheds light on anchoring in negotiation. Would a trained buyer ask “what do you want for the business”? Class is back in session as The Boardroom discussion turns to negotiation and NDAs. As a potential seller, is there a reason to sign an NDA if they want to see my numbers? Process control, emotions, the Dunning-Kruger effect, and more get unpacked in this episode.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Congratulations to Brian Alexson on his recent promotion at Anticimex (AX). Quicker than you can say SMART, Brian rose the ranks from reporting to Senator Scott Stevenson to the President of Anticimex North America. Stockholm-based Anticimex views North America as a new frontier. AX entered the US in 2016, and now sits at #8 on PCT's Top 100 list. With $1 billion in its sights, will AX provide coast-to-coast coverage like its North American counterparts?
Brian has experience in janitorial, solar, and recycling. What can the pest control industry learn from Brian’s varied background? What prevents industry innovation?
Jarl Dahlfors preached on the decentralized format at Anticimex in Episode 24. Let’s find out if there are exceptions to that rule. As an outsider looking in, it’s hard to find room for improvement at AX. What can Brian do to raise the bar with their high performing culture?
Watch in 4K on YouTube, or tune in to hear Brian share his take on customer experience, communication, and leadership.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Andreas was first mentioned in Episode 23 via shared credit for Nomor’s turnaround alongside Svein Olav Stölen and Robert Stierngranat. It’s time to put the spotlight on former Nomor COO Andreas and his wife, Victoria. Victoria represents the world’s largest privately held leadership development organization, Franklin Covey. (Yes, as in Stephen Covey's The Seven Habits of Highly Effective People, Franklin Covey.) Victoria shares a lot of the lessons given in her Wall Street Journal bestseller, Everyone Deserves a Great Manager, a book she co-wrote with Scott Miller and Todd Davis.
As an executive coach, author, and keynote speaker, Victoria is on a mission to help first level leaders. There is a wide gap between donning the title of leader and receiving proper leadership training. There are finance classes and degrees, for example, but where can you go to learn leadership? Often with a lot of chaos and a little planning, promotions are handed out to the best individual contributor. Is it possible to design and implement a formal training program? Strategy takes top priority for senior executives, but should leadership development take the front seat?
Not only did Andreas dive into the unglamorous pest control industry, he landed in the middle of a wasp summer at the start of Nomor's turnaround. Undeterred from the bad season at a troubled business, Andreas injected his hospitality experience into the industry. Trust, determination, and pride were critical in the turnaround. What really stands out though is when Andreas shares the first commandment of leadership: Know thyself.
It’s easy to throw stones at selling during a service call, but it’s hard to argue when you're adding value. That’s sales and service. With previous experience inside larger organizations, Andreas, Svein Olav, and Robert, built and refined incentives to create the winning culture. It’s a relief to hear that incentives can be refined through trial & error.
Senior executives underestimate the importance of being leadership coaches. Watch (or listen) as Victoria coaches Paul and Patrick throughout the interview. From formal feedback to employee engagement to adapting to change, you’ll find ample relevant advice throughout this Atlanta interview.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
How did Arrow Exterminators grow into the $300 million family business it is today? Step into The Boardroom as Emily Thomas Kendrick takes us back to Arrow’s humble beginnings. What sounds like an episode of Breaking Bad, was just Emily’s PawPaw cooking up business greatness. Step back to hear Arrow’s family heritage, including Joe “Chief” Thomas taking the reins in the ‘70s and Emily’s rise to Chief Executive Officer.
Hear how he now-Arrow President Tim Pollard found his way onto the Arrow team. The two have a long-standing history as “Sugar Booger” recalls their first meeting. The two strike a great balance, and Emily concedes to Tim’s operational prowess.
“Chief” gets credit for growth by division business model. Hear the irony of trying to stay small as you grow. With 2,736 teammates spread over 144 service centers in 11 states, its family culture on a massive scale that has led to Arrow’s success. It’s clear that hard work and results get rewarded at Arrow. In fact, they morphed their longstanding generic vision into spotlighting rockstars. What can be overlooked in such a large organization; the executive team emphasizes how decision making impacts the entire team. Family culture shines through as Emily and Tim describe former COO and President-to-be late Jeff Singley as a brother, son, and best friend.
The conversation turns to M&A and integration. How does Arrow decide on geographic expansion? Paul asks about integrating new employees into the deliberate family culture. Sitting off-stage, Kevin Burns gets credit for setting the stage for smooth integration weeks before Emily and Tim arrive on the scene. It sounds like deliberate transparency takes center stage describing opportunities for new teammates. It's been rumored that Emily gives out her cell number while onboarding new teammates. Is it true? If so, does she regret it?
How does Emily respond to representing women in pest control? It begs to discuss diversity in a male-dominated industry. Do Arrow’s teammates represent the cities they serve? Speaking of local, Emily and Tim share their new plan to give back to local charities.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
What hatched as a Peugeot and an island dream, turned into the breeding grounds for the largest pure-play mosquito business, Mr. Mister. Evolving their client-technician relationship, Matt Brill and Ryan Claterbaugh, quickly qualified for PCT's Top 100 list. Matt sits down to share their recipe for success in the first Atlanta Session.
As mosquito franchises swarm this industry, Mr. Mister progressed through its life cycle; it too considered the franchise route. What gave them the biggest bang for their buck? Was it "partnering" with Andrew Barrows while at EPS that helped them focus? What did Matt and Ryan decide to do with their "Pest Control for the People" business?
Talk about commitment. Nothing says burning the ships like key swapping a BMW for a Tacoma. It was that same commitment to service that set Mr. Mister apart. Matt shares that they were a service company that chose to offer mosquito control. "Jesus Chicken" closes on Sundays, but not Mr. Mister with its same-day and next-day response.
Adaptation was at the foundation of their management style. Hear how the right decision today may or may not be the right decision tomorrow. There was no time for stagnant thinking as this business emerged into a service industry powerhouse. While the yin-yang duo stayed in their own lanes, at times extra opinions drifted over. How did the two agree to keep commodity pricing at bay?
From referrals to retention to review response, Matt gives practical advice based on their experience. Their 24/7 marketing coverage pays homage to Waffle House's patty melt. The duo wasn't harvesting yard signs, but their marketing efforts didn't go unnoticed. Before deciding on selling to Terminix, hear how Matt had extra fun with the yard signs as the time to sell approached.
The two took a bite out of time theft as they adapted their pay plans. "Always staffing" goes to a whole new level when discussing backup techs for no shows. Itching to grow a mosquito business? Don't forget that Matt and Ryan found success in their countercyclical approach to the offseason.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Patrick and Paul have been busy during the break. Tune in to find out what they’ve been up to since the end of Season 1 and what's next for Season 2.
The two look back at Project Black Bear. Behind the scenes of the process, Patrick was able to visit with Rentokil’s Alex Nigh and other potential acquirers. As a client, what does Patrick have to say about his first hand experience working with the Potomac team?
The two debrief on the recent interview with Terminix CEO Brett Ponton in Waco. Since publishing the interview, Paul can’t count the times he’s been asked what his legitimate opinion is about the relatively new CEO. What is Paul’s take on the new CEO and the reestablished M&A team? Patrick learns that the lunch table conversation covered a lot more ground than Brett’s favorite color.
Speaking of Terminix’s M&A team, Andrew Klein made the trip to Waco for the closing dinner and employee announcement. Having sold his business to Terminix a couple years ago, what advice does “Moses” give on employee transition? Check it out at ProjectBlackBear.com. Also on ProjectBlackBear.com, you can watch a clip of Paul and Patrick’s session with Arrow Exterminators’ CEO Emily Thomas Kendrick and President Tim Pollard about culture and scale.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Brett Ponton makes his first industry media appearance since taking over at Terminix. The Boardroom Buzz took the show on the road as Brett and Paul joined Patrick in Waco. Why Waco? Check out Episode 59.
Brett has a storied history in the automotive industry. So what is it that steered him to Terminix? His experience with private equity and publicly traded companies fill his resume, but this stop is different. Patrick isn’t afraid to ask the easy questions such as, "How does leading an automotive store chain translate to the route-based service model at Terminix?" and "what signal are you sending by buying back stock?". Also, listen for how Brett responds when posed with a turnaround question.
With less than a year under his belt, Brett is quick to invest in his team’s future success with investments such as Terminix Way and CxP. Opportunities abound, and he has the vision to put the tools in place to maximize his team’s capabilities. He sees today's investments paying off in employee retention and in-turn, customer lifetime value. Incentive structure and defining career paths are part of the discussion on ways to improve team member performance. From technology to staffing to franchisee relationships, Brett isn’t afraid to address where opportunity exists.
Paul’s experience with Terminix’s M&A model and team over the years is not left out of this sit-down. Brett is conscious of the psychology of the deal and brand reputation post-sale.
Brett states the paradigm that exists between strengths and weaknesses. His management philosophy is clear as he discusses an inverted org chart style and responsibility for front-line team members.
Hop over to ProjectBlackBear.com to watch the interview.
Co-Produced, Edited, and Mixed by Dylan Seals of Verbell.Ltd
Welcome back to Season 2. Head over to ProjectBlackBear.com for a video-only episode.
Subscribe to our YouTube channel - youtube.com/theboardroombuzz
Before jumping into next week's Supernova presentation, Paul and Patrick catch up on all things M&A. Tune in to hear what the strategic acquirers have been up to so far this year.
Gambling, gold, or gambling for gold. Before signing off for Season 1, Paul recalls clients who found even greater wealth after pest control.
A few seats remain for Supernova. Register today.
It’s not even July. Is that Christmas music?
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
From mixologist to MBA to management trainee, Kyle Varona traveled a road less taken into his family's pest control business. Instead of graduating into Fahey! Pest & Lawn Solutions, it was Truly Nolen - the business - that launched Kyle into his post-college career. It was Truly Nolen - the (legend) person - that inspired Kyle along the way.
Customer reviews do a lot more than make a phone ring. Listen for added benefits of 2400+ Google reviews. Kyle also extracts success with a simplified service footprint and offering. Diving into this interview, you’ll hear how Associated Pest finds a common origin with Fahey.
When it was time for David & Terry Pomfret (aka Dad & Mom) to practice retirement, Kyle found himself at the helm. His entrapped experience in New Mexico made taking over a breeze. Fast forward to 2020, and hear how Kyle realized his destiny.
With valuations at an all-time high, Fahey found itself selling to Turner Pest Control instead of selling to the next generation. Register for Potomac's upcoming M&A Supernova event to hear more about valuations and the consolidation boom.
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Peter Schiff joins Paul for lunch at Dorado Beach to chat about currency, asset prices, and what is coming down the pipeline for America's economy. Peter is a successful investor, author, and host of The Peter Schiff Show. Before stepping into this interview, you'll hear Peter's 2006 CNBC's Kudlow & Company clip in which he predicts the economic downturn.
Of all days to visit, Paul and Peter find themselves immersed in their conversation during a crypto bloodbath. Peter shares that the world of cryptocurrency is built on speculation and margin debt. With blood in the water, is this the tipping point for politicians to get involved? Will this interference lead to laws to protect people from the free market, or find itself as another means to punish capitalism? Peter does not like any of the thousands of alt-coins, but it sounds like crypto is less likely to be manipulated than traditional fiat currency. Peter has long been known for his love of gold. It's interesting to hear his argument for a national currency that marries block chain with his shiny gold standard.
Peter and Paul make time to discuss inflated asset prices. The Feds believe that the wealth effect creates economic growth. Does it? Peter preaches that entrepreneurship and capital investment grow an economy. After years of 'monetary heroin', Peter reasons that we should let the free market work. Looking to the future, Peter shares that the dollar is the only limiting factor, and that our future lies in the hands of our creditors. Peter contends that a strong currency leads to competitive advantage, and that sound money is the foundation of any prosperous country.
Inflated asset prices affect pest control shareholders. Following the sale of a business, how can owners protect their assets? Peter advises on rearranging assets into international emerging markets. In regards to wealth management, Peter's company as well as BKD are a couple places Paul says to research.
Patrick missed the Dorado invite (or The Mex intercepted it). In the post-Peter cafe chat, Patrick asks Paul about alternate scenarios had the Federal Reserve not taken the easy way out. Is it time for economic rehab? Paul shares that during the financial crisis, Peter both made money and defended his thesis. From thesis to application, Paul makes a case for preparation over prediction.
Paul also recommends watching Peter's Mortgage Bankers Speech from November 2006 and Why the Meltdown Should Have Surprised No One from March 2009
For more information on current market conditions and valuations, register for M&A Supernova: Navigating the Late Stages of the Pest Control Consolidation Boom
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Sally sells seashells by the seashore, but Shelley wants to know about selling her pest control company and starting back up in a nearby area. Brands, logos, and restrictive covenants come to mind. What else will Patrick pull out of the mystery grab bag of listener-submitted questions?
While Shelley is curious about making an exit, Jesse wants to know about competition. Does The Boardroom Buzz duo have an opinion on competing against a large corporation or several mom & pops?
Tune in for a quick Q&A session on digital marketing, inflation, and the current M&A markets. Paul reinforces that there is a lot more at risk this year with valuations than taxes. To hear more about the M&A market in your region, register for a free event at theboardroombuzz.com/supernova
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The marketing game is rigged. What would happen if advertising utilized a President-producing marketing machine? Phillip Stutts introduces his Undefeated Marketing System in this game-changing interview.
There isn't enough room for our guest's resumé. Phillip has worked on eight presidential campaigns. Here are a few previous clients: Pres. George W. Bush, Sen. Bob Dole, Gov. Bobby Jindal, Sen. John Thune, and Gov. Ron DeSantis. And it turns out that Phillip and Paul share a mutual client.
In politics, understanding the voter comes before spending money. The same idea is true for advertising. Phillip's screen-agnostic full-service marketing firm follows a five step process gleaned from the political arena. Skip a step. Skip success.
The Boardroom has been home to a few digital marketing discussions. Jeff Phillips, Tracy Judnich, and Darin Huffaker to name a few. The odds were stacked against (now) Gov. DeSantis. Phillip innovated. Phillip led the largest geo-farming (yes, geo-farming) campaign in the history of advertising, and in doing so led voters across party lines.
Most business owners talk about their business and how good it is. Guess what. Your customers don't give two shakes. If you knew your customers' most important values, wouldn't that be useful? Your potential customer will see 10,000 ads today. It turns out that competition extends beyond other pest control companies. There is a secret weapon in the pest control industry. By using customer data, you can get an advantage over your competition every time.
Hear about a pest control company that lost money by advertising discounts. Perception is reality. Cheap and safety do not go hand in hand. Stutts' Win BIG Media team increased the client's top and bottom line with a 'smarter' campaign.
Don't let looks fool you. Facebook, Coca-Cola, and Google don't sell soft drinks or search engines. Then what do they sell? Owning data is not under-emphasized in this interview. Phillip found himself canceled. Hear how he seized the opportunity.
Connect with Phillip and his team: phillipstutts.com/insights
Dogs >> Cats ;)
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One year after selling Responsible Pest & Scorpion Services to Certus, Darin Huffaker recalls the glory and not-so-glory days. From California to Arizona to Idaho, Darin and his brother, David Huffaker, made big moves along the way. Darin is quick to share mistakes, and how the siblings journeyed together in this turnaround.
Responsible found top-line growth on the doors, but it trickled all the way down to the bottom line. Add in the mix of recruiting plus ethics, and the brothers had to find another way to grow. Creditors turned down Darin and David left and right. Where could they turn as everyone else turned them away? Would saying no to business be the key to their bottom line success?
Hear about the evolution of their brand name, and the impact it had on their marketing. Scorpions were a powerhouse pest for this Phoenix player. Darin shares how it proved difficult to find the best formulation, and how he had to put his mad scientist R&D skills to the test. Who doesn't want to see scorpions die a painful death?
A price increase conversation comes back to The Boardroom, but this chat brings in a new angle. Perception is reality. Hear how Darin designed a small business mentality with white-glove service. For his team, technology was really a tool and not just a toy. From customer experience to remote working to online marketing, Responsible set themselves apart.
Good luck finding another Blackberry-shot video with more YouTube views.
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Tracy Judnich along with his two business partners, Joe and Jeremiah, led The Bug Guys to a solid (and speedy) exit. Certus has taken over, but looking back, what would Tracy do differently?
Paul gives props to Tracy's unique capabilities. You'll be hard pressed to find a denser service map. That mad focus went straight to the bottom-line. Join the conversation as The Rule of 23 goes under the interrogation lamp. What top-line and bottom-line growth did his business have? How does it compare to Mike Rogers', Jim McHale's, and...Patrick's business?
The business had roots on the doors. In fact, he reveals his connection to a previous Buzz guest. The Bug Guys maximized sales at the door, but it wasn't on the doors. Tracy gives details to this specific concept plus other start-up advice.
You'll hear his opinion on selling over the phone and experience with bundling sales. The funny thing is that Tracy can't turn off his salesmanship. Who knew explaining employee benefits would turn into a sales presentation? He describes how compensation is more than an hourly rate.
Stick around to hear Paul preach on pricing again. Is it ever too little too late for a price increase? Uh oh. Does Paul need to call Bobby?
It's 2am. What are you smoking?
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Paul Utts directed RID Pest Control to provide a more than comfortable lifestyle. Now writing the last chapter of his pest control career, he still has some work to do before sailing into the sunset.
With this transaction completed, it is time to tell the story of how Paul Utts stumbled into the industry. What ends an era in pest control services for Paul, began as a waiter at a kosher hotel. While he credits this role for learning customer service, would you agree that this time planted the seed for his love of acting?
After college, Paul learned a lot about food safety as a health inspector. Seafood or see food? As a health inspector, did his inspections reveal a kitchen's true character? There are some technical bits in this Boardroom banter, but tune into the sales opportunities and advice.
From inspector to management to an owner, Paul wore many hats in his storied career. "Managing from a P&L is fascinating" may not be the only line that he feeds during this interview. Speaking of management, he shines the light on using bonuses to motivate. Wow-ing your customers can be as simple as answering the phone. Is it too much to ask to get a 'hello' from the other side when you call a service company?
Vulnerability comes to mind when it's time for due diligence. Before that scene plays out, acquirers should take a cue to shift their focus to the seller. Which hat did Viking Pest Control wear to the courting conversations?
And for the record, Utts is not his Jewish name.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Why not wait until Episode 50 to start at the beginning? The beginning of M&A (mergers and acquisitions) that is. In the miniseries foretold, legal structure sits as the first building block of M&A.
You'll hear about asset purchases and stock purchases. Don't get drowned out in the verbiage. Hear how the role you play in an M&A deal determines your preferences. For previous reference, Tony Sfreddo (Episode 5) built up quite the government contract portfolio. Does that lead itself to designing a deal one way or the other? Are there variations to asset purchase agreements and stock purchase agreements? Maybe there are more than two ways to skin a cat.
The arrangement bakes-in tax implications. Is there a work around? Allocating purchase price can favor long-term capital gains over ordinary income rates.
Fast forward from the announcement, what will benefits look like with the new owner? Deciding a deal's architecture determines how employees move forward while the ink dries.
Thirsty for more? Go grab a vitaminwater®
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Before you can judge Patrick for his inability to explain Profit First, it's a better idea to ask the author. Mike Michalowicz gets his formal introduction to the pest control industry in this extended interview. Hear how Mike leverages human nature to establish predictable profit. Sales - Expenses = Profit. True, but Mike creates a cash management tool by flipping the traditional GAAP formula.
Pre-Profit First, Mike struck it rich in his early 30's. As a new angel investor with a nice ride, Mike hit rock bottom in more ways than one. With raw emotions, he recalls the events that inspired his best seller. Writing became therapeutic as he began his 'journey to eradicate entrepreneurial poverty'. Revisiting his experience with depression, Mike recommends mental therapy. He even gives a poor man's version to help recover.
Don't sit-back while Mike preaches on plowback pain and pleasure. Is there a better segue than hearing Mike advocating on profitability before selling? Paul counters by asking about ROI. What if your own business is the best vehicle to put capital to highest and best use? Hear how Profit First-adopted companies compare to the control.
Windup the clock. Paul pulls another Michalowicz book, Clockwork, off the shelf for the session's 1st OT. Swooping in and saving the day as a superhero manager leaves a wake of damage. What can an owner taking a four-week vacation do for the business? Do you find yourself carrying the burden to provide jobs as an entrepreneur? By working in the business, are you taking jobs from your employees?
The prolific author is releasing another book this year, Get Different. He gives an example of unique marketing as opposed to getting lost in the sea of industry best practices. Does Dad approve?
Paul inquires about Mike's habits to produce these books. Mike goes onto share income generated from writing and distribution breakdown. Mike gives input on mainstream publishers vs self-publishing vs hybrid options. Is that Dad whispering in your ear, or Mike narrating another book for Audible?
Dylan joins Paul and Patrick to recap the dynamic interview. The lines get blurred between private life and business life. Paul retells stories of those that have cashed out but hold onto regrets. Dylan opens up about his similar struggle with depression. He shares his success habits and the personal growth he's found through journaling. Dylan explores the subconscious mind, and how he utilized consistent habits as opposed to willpower.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
It’s time to catch-up with some listener submitted questions. Serial entrepreneur Patrick can’t find a way to dodge the first question about franchising. Six years ago, Patrick and Bobby franchised their business. With properly placed intentions, what advice can Patrick give looking back at the experience? Patrick goes into detail about what he would do differently if he had to make the decision again. While Paul recalls Patrick learning the hard way, Paul gives an alternate entry for staking start-ups.
On the flip side, Paul gives advice to those considering the franchise-life. A business in a box sounds efficient, but ask yourself, ‘self, am I buying myself a job or building an asset?’ before becoming captive to the franchisor.
Proposed tax increases have been a catalyst for sellers such as last week's guest, Jeff Phillips. What effect do these tax changes have on acquirers' appetites and the price they're willing to pay? The first quarter of 2021 has been Paul's busiest Q1 in his eighteen years as a pest control sell-side advisor.
While tax speculation anxiety plays out in the US, tax increases are going into effect in Canada and other countries. Drilling down to specific markets, population exporter-California and importer-Texas get extra attention. What does Paul know about the buyers' outlook for this year in these markets?
Scarcity of assets brings up another line of questioning. How can scarcity be quantified and managed? It's not just about size, but also the number of assets in a given market. Patrick caught wind of previous perverse incentives in M&A. That road led to a quick chat on leverage, contingencies, and skid marks.
When it comes time to discuss growth strategies, would it really be an episode without discussing acquisitions? Referencing Pam Blauvelt's experience, Paul has seen where deals have led to distractions and mistakes. As exciting as arbitrage sounds, can it hurt more than help?
Stay tuned for upcoming events: 1) a Mike Stanczyk collaboration on shareholder agreements, and 2) measuring and managing customer retention in The Attrition Condition.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Succession plans may sound easy compared to the alternatives. Hear how ripping off the Band-Aid compares to family buy-outs with strings attached. From managing the business to managing their health, Jeff Phillips's parents never enjoyed their golden years in retirement. It may be an extreme reaction, but at 47-years old, Jeff decided it was time to exit after his dad’s passing.
Although his father is no longer with us, his wisdom lives on in this Boardroom conversation. From 'build it to sell' to 'do something and do something very well', Jeff's dad personified the Blue Chip mentality.
After taking over as Blue Chip leaders, Jeff and his sister, Kim, ran an efficient business. Measure and manage. Routing, recurring, and responding to leads were a handful of monitored metrics. Knowing their numbers helped them when it came to save on overtime.
Scott Stevenson, Doug Stevenson, Court Parker, and Sean McCauley. Now add Jeff to the list of U Groupers appearing on The Buzz. By picking up on the lessons while not making all the mistakes, hear how his peer group experience enhanced his bottom line. When it was time to make changes, Jeff realized that customers much like dropped children are resilient.
There were times that Jeff found he already had the secret sauce. When scheduling headaches became a problem to solve, his business adopted exterior only service before it was popular. In terms of marketing, pest control is not sexy. It's about front of mind awareness. Jeff shares the balance between office location and paid remarketing ads.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Step into The Boardroom to hear how Sean McCauley built his empire. As the owner of Aantex Pest Control, Sean is now on pest control company number three. While pest control runs through his veins, it's not the only ‘egg in his basket’. Sean has monetized his previous pest control investments to venture into other assets.
Sean shares his opportunistic outlook: there are different advantages in every regime. Hear how to detach from the business, when to run into the fire, and where to find opportunities. This week's guest brings his crystal ball into The Boardroom. He sees a V-shape recovery. Will you heed Sean's advice to chill out and ride the wave?
Put your economics hat on before stepping into this session. You will think about the bank after this episode. Whichever cards you think you are holding, remember the bank is the 'apex predator'. Paul questions Sean on who has the most to gain in an inflationary environment.
With no topic off limits, it may surprise you to hear our guest's take on Millennials. Speaking of funny money, Fannie and Freddie aren't imaginary friends. Is the government-backed duo holding down interest rates?
Sean even reveals terms for his commercial real estate notes. Sean finds he has a lot to gain underwriting entrepreneurs, in addition to his hard asset portfolio. It is one way he has found to diversify his net worth. Listen for how Sean and Paul get their returns on time invested.
This is the unintended follow-up to Episode 14's buy-side conversation. From someone that will "never have to work another day in my life", Sean will encourage you to get un-lazy. Go out and find the deals.
If you've made it this far, you may survive Professor Paul's Econometric After Party. Diversification 201 is in session. Sit back and hear how zombies do exist.
Sean says we live our life in unrealized gains. Does that saying go deeper than a real estate metaphor?
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There was little warning before WorkWave CEO David Giannetto walked into The Boardroom. Patrick's past PestPac experience sets the tone for this real conversation. Since all the skeletons are coming out, why not spin an extra 'nickel and dime' into the chat? David stepped into the CEO role two years ago. Support tickets counts ran high, and the tech became more indebted by the day. The customers were not the only ones frustrated by slow resolve.
There must be reasons to sneak a vendor into The Boardroom. David announces PestPac's partnership with Target Specialty Products. This alliance can put even more money into operators' pockets. Another announcement he shares is WorkWave's promotion from IFS to parent-fund, EQT.
David admits PestPac's intermittent communication. When rolling out $1.5 billion WorkWave Payments, he managed the bloody murder calls. After accepting the change, the native payment platform padded dollars into most of the end users' bottom lines. Is there enough in savings and increased productivity for PestPac to pay for itself?
Migrating from customization to toolsets, PestPac commits to modernizing. It's interesting to hear PestPac's move from customization to configuration. Listen for the Executive Steering Committee's role on roll-outs. This Boardroom conversation doesn't end there. From high switching cost handcuffs to competition in software to and scrutiny over shared interests, this chat packs in a lot.
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The ink is still wet and the emotions are raw. Jason Byer opens up about his team and the guilty conscience he hid last year as he sold the family business. Jason led Suburban Exterminating up to and through their sale to Rentokil in late 2020.
The service and billing decoupling discussion returns to The Buzz, but Suburban was unique. Listen for how Door Knockers rang-in a new billing method. If you can't beat them join them. Jason even considered putting summer sales to work in his business before the sale.
Moving forward, Jason and his team are learning the Rentokil way. How is this longtime family business transitioning into corporate culture? Hear how as a sophisticated business, Suburban has integrated into the new environment. Jason recognizes his team and their ability to adapt. Good or bad, what is the Rentokil-effect on the front line employee? He shares his excitement about the upgraded resources and ability to grow.
Jason represents succession assumed in a family business. As a minority partner AND a son, what is his take on risk and reward? Paul preaches from previous experience on this parental pest control paradigm. In contrast, Paul recalls another family situation with hyper communication.
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Mike Stanczyk makes time between closings for an encore appearance in The Boardroom. On this occasion, Mike fields shareholder agreement questions. From formal arrangements to napkins to none, hear how preparation and sophistication varies. Don’t feel alone if you find yourself without a proper agreement in place. Learn from others. Have these discussions. Proper agreements are borne from previous poor personal planning.
You know by now that family business in pest control is a reoccurring theme. Paul gives notice; verbal only arrangements are bad and corporate welfare is worse. Parenting advice uncovers family business trends and inherited titles via surname similarity.
Options are prolific in the tech industry, but Paul asks Mike about their place in pest control. The conversation is peppered with tax implications. Do options have their own tax advantages? Paul recalls when a sale was discovered with derivatives in the balance. You’ll hear how a ‘free and clear title’ isn’t a phrase unique to the auto industry.
If Patrick wasn’t having a hard enough time keeping up, Mike and Paul play a rhetorical game of tag-along and drag-along. Patrick can be difficult to deal with, but it’s the guest dragging Patrick along this week.
Following Paul’s judge and jury soapbox last week, what will this week’s legal disclaimer entail? Is Patrick the only one asking who an attorney represents? Should you find yourself calling Mike, remember that he is NOT LegalZoom.
There is more than one takeaway in this public service announcement of an episode. Whether you’re in a family business or not, always remember Mex’s Rule #1: don’t suck at life.
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Patrick survives the un-Texas weather to only later hear Paul tell him what he’s (not) worth. Between upcoming tax rate hikes and inflated valuations, wouldn’t you know that Paul is keeping busy (or at least The Angry Mex is)?
In other current events, Patrick felt special for a hot minute. You'll hear how about "a top pest control provider in the southeast that is actively seeking to expand its current service area. Our client is in the top 10 nationally in terms of annual sales and is privately held. Knowing that yours is one of the best and fastest growing in the area...". Paul talks Patrick down from his Rising Star pedestal.
Patrick recalls a one-time project in which he had to research recurring vs reoccurring. Leave it to Patrick to chase that into a food frequency free-for-all. If Paul can make it past the Compound, he can show how his one (and maybe never) trip to Waco explains the reoccurring difference. Paul goes on to distinguish reoccurring and one-times. Patrick questions Paul about saying no to Aunt Suzy. Paul questions Patrick’s question. It may be a Buzz word, but there are 'opportunity costs'.
Service Agreements. Yes or No? Paper or Digital? Early cancellation fees? Termite work? Paul recalls days of yesteryear when due diligence teams sampled service agreements. What happens when a service agreement doesn’t line up with what is being delivered? You may not find yourself in a class action lawsuit but it may happen to the acquirer.
The disclaimer Paul gives is one for the ages. He repeats what he has heard from attorneys. Do NOT take what Paul says as investment advice or legal advice, or prepare to stand before the judge and jury.
Episode 42 guest, Jeff Bain, must be an instant classic, or maybe it's an easy reference. Be like Jeff; define what makes your business different.
Make sure to RSVP for Paul's upcoming customer retention presentation (email theBuzz@potomaccompany.com). Donation to The Human Fund not required.
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Jeff Bain knows how to learn from others. Taking notes from his insurance colleagues, Jeff knew he had to build an annuity-based pest control business. His top priority was to protect the residential-heavy business from wild seasonality as he took over the reins at Bain Pest Control. During Jeff’s collegiate days, he found himself getting paid to learn from American Pest’s former leader, Jay Nixon. Similar to previous Buzz guest Jim McHale, Jeff even shares a nod to the Sameth family and their Residex reps’ willingness to help shape the recurring business model.
Relationships, referrals, and pricing chatter abound during this time in The Boardroom. When it comes to building a client base, Jeff takes over as teacher during this sit-down session. Listen for how Bain Pest Control’s retention rate and marketing budget stray from the norm. Jeff even makes time to answer a listener’s question about selling in the Northern climate.
Over 100 years after the Ukrainian immigrant entered the USA via Ellis Island, Jeff Bain found himself realizing it was time to sell the family business. When it was time to select an advisor to sell his business, Jeff decided on the advisor that had his best interest in mind. His high trust relationships led him to having several employee discussions before selling the near-centenarian business. You’ll hear how Jeff had his employees’ opportunities in mind while deciding on Rentokil as the best acquirer for the business. There are too many emotions to list in this Boardroom sit-down. Speaking of emotions, Jeff goes on to share a story that shows the soft-side of Potomac’s chief negotiator.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Step into the Boardroom with one of Paul’s favorite pest control people. Mitch Smith discusses experiences which shaped his management style. He shares leadership lessons learned throughout his 35+ year career. This Boardroom guest started in the industry as a technician and rose in the ranks at both TruGreen and Centex. Before Mitch’s current position as COO of Edge, Mitch was the Pacific Division President at Orkin.
Mitch brings an interesting perspective to the ‘lawn vs pest’ discussion. He shares the direct connection between business maturity and universal technicians. Service specialist salesmanship may sound like an oxymoron, but trust and unrefinement go hand in hand.
While personality profiles find their way into this culture conversation. What are the betting odds when against forcing a square peg into a round hole? Mitch preaches that influencing company culture is more than attending a two-week seminar. It turns out that learning from direct reports and self-reflection has a lot to do with leadership. Mitch recalls a realization moment when a mentor taught him to look in the mirror.
Sports analogies abound as running, juggling, and lifting get shared in this sit-down discussion. Hear how Mitch describes spending energy units for high growth and high service delivery standards. Mitch brings management metrics into focus as he shares his tenured strategy.
Do you come to this conversation with buy-side in mind? Tune-in to hear Mitch’s post mortem metrics following an acquisition.
Perceived value is critical to keep the recurring revenue wheels turning. Before you listen, ask yourself, ‘how do I measure world class service?’
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
The U Group held its semi-annual meeting in Tampa, and called on Paul Giannamore to present. Call it a press pass or Paul’s paparazzi; Patrick managed to find his way into the meeting. Even the Senator Scott Stevenson made the drive to hang out with Paul, Patrick, and his U Group colleagues. While in Tampa, Paul made time to visit Seth Garber’s Pest Daily studio for some buy-side lessons.
What happens when a potential deal stalls in due diligence? It gets interesting when it’s not one of Paul’s deals and a prominent strategic acquirer calls on Paul for help. Patrick asks Paul to draw the line in the sand between brokers and sell-side advisors. What about Patrick’s conflict of interest hunch between buy-side and sell-side work?
A sell-side client gets the duo discussing what’s better than a best and final offer. Paul also reveals his personal connections with the Dunning-Kruger effect. Standing on the shoulders of giants, even M&A-experienced private equity partners call on advisors.
In life, you learn to expect the unexpected. As a negotiator, you learn to expect the opposite of the expected. Which title does Paul find himself donning? Paul the Picasso Purveyor? Paul the Peacemaker? Paul the Point of Indifference Pusher?
Patrick's phone call with a tenured strategic buyer, turns the tables as Paul asks Patrick what he learned. You'll hear how Patrick finds himself bearing the advocate role for other pest control owners. Trust and credibility are common threads woven into this Boardroom conversation. Would you have the discretion to turn down $1 million in overtime?
Which pop culture reference will Paul drop in The Boardroom this week? Don’t worry. Patrick didn’t catch this one either.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Set aside what you think about routing for two hours, and step into the Boardroom with Pam Blauvelt of PCT Top 100 Griffin Pest Solutions (now a Rentokil company... finally). What Doug Stevenson is to financial systems, Pam is to operational efficiencies. Find the path to the Holy Grail as you consider same-day scheduling changes.
Tune-in to hear how an acquisition accident left Pam and her business partner, Jeff Spencer, scrambling. Borne out of crisis, Griffin was forced to implement a four-day workweek. A necessity turned into demands echoed from Griffin guys and gals.
Murphy's Law #14 in pest control states that your technician's schedule puts him at a restaurant during the lunchtime rush. Not so with Pam's PestPac Pro Parameters.
Other than a four-day workweek, what other lessons did Pam learn while making acquisitions? What would Pam not outsource during due diligence?
Production versus hourly pay? Ask yourself how many technicians you'd be willing to lose if making the change is the best thing for your business.
If you've ever found yourself saying 'talk to me like an adult' to a technician, then you'll enjoy time spent in this Boardroom.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Last week’s inspirational episode with Shelby Hawkins still has The Boardroom picking up the pieces. Paul summed up Shelby’s interview best: ‘no excuses’.
It’s a good time to catch up on Paul’s New Year’s Day board meeting. Paul gives feedback on the P&L’s, incentive structures, and management reports. There is a give and take to incentive structures. Who knew that a hedge fund conference on modern portfolio management theory would spiral into giving Dennis Rodman free throw lessons? How will Company Bravo’s “Timmy” stack up at the line? Where is the balance between incentives and preventing demotivation? It’s a yin and yang exchange. Speaking of balance, The Matrix gets a nod during this week's compensation conversation.
It’s on the record. Paul commits to writing a "Nerd Nerd" paper on the organizing mechanism spectrum in pest control companies. As the loyal listeners know, Patrick takes great joy in packing events on Paul’s calendar. As if Paul’s schedule isn’t busy enough, stay tuned for a combined presentation on the chart of accounts (Episode 26), employee metrics (Episode 34), and (an updated) Aftermath.
The chat has Patrick asking if there are common conversations following a preliminary valuation. Are there owners that are not willing to make changes? A simple question about routine EBITDA adjustments leads to a consultation on narratives and the ‘interplay between growth rate and profitability.’ It turns out, it’s a lot more than adding and subtracting when the acquirer takes over. Patrick didn’t see it coming, but the benchmarking debate returns.
Paul: “If anyone gets anything out of this episode. You are not selling the past. You are always selling the future.”
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Shelby Hawkins found herself in pest control with 3 kids, 2 college degrees, 1 ex-husband, and 0 business experience. Her maternal determination brought her from food stamps to financial freedom. As a pest control pioneer, Shelby broke the glass ceiling but in her humility, she credits providing for her kids. It wasn't hard enough that she was outnumbered as a female in pest control, but she found her state inspector making weekly visits.
Her female point of view set her apart during real estate interactions in Tucson, AZ. Ironically, real estate wasn’t ready for Shelby when it became time to buy an office.
Shelby attended a national trade convention, but still found herself as an outsider. Her determination kept her focused on learning from others. Years later, Shelby recalls Don Jamison offering a helping hand all the way from Memphis.
Is self-talk part of Shelby’s success? After reading Dr. Joseph Murphy’s book, Infinite Riches went from subconscious mind to landing in her lap.
Listen to how entitlement and false loyalty surfaced when it was time to sell 5 Star Termite & Pest. Even in her retirement, Shelby is practicing what she preaches: get out of your comfort zone.
Enter Kevin Burns and Arrow Exterminators. Now with $280 million combined between 137 branch offices, Arrow was the perfect fit for Shelby’s business. The Boardroom debriefs on Shelby’s love for working in the field. Join us as Kevin shares from his sixteen years of experience watching owners unwind from their businesses. Arrow’s culture is clear as Kevin shares their goals to keep 100% of their customers and employees following an acquisition. Paul gives credit to Kevin, Emily Thomas Kendrick, and Tim Pollard as they welcome new team members to their Arrow family. Listen for that same family approach during the discussion of branch size and employee opportunities.
In terms of the global economy and pest control’s impact on world health, industry perception is no laughing matter. Who knew that encouraging training and licensing would put Patrick on his soapbox?
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
What has Paul learned from The Boardroom Buzz, and how it has changed his perspective? It's only a matter of minutes before Paul reminds Patrick of his Anticimex HQ boardroom conversation. Jarl Dahlfors shared his Quality, Profit, and Growth philosophy in Episode 24. With a quality-first priority, it’s time to hear the realities of chasing shiny objects vs. making internal improvements.
What makes up an effective board? Maybe better asked, who makes up an effective board? Taking a cue from the great Stevie Wonder, Board Member Paul finds himself with ‘No New Year’s Day to celebrate’. Paul confesses to his living laboratory, Company Bravo, and his mad science experiments. In light of Bravo, it’s time for another chat about incentive structures.
When it comes to outsourcing capabilities, does call center overflow pay for itself using a company such as Slingshot?
Patrick finds himself in confession for egregious sins committed years ago. When it comes to sales, which offerings should be considered and likewise avoided? When it comes to leveraging a customer base, does it make sense to acquire a similar business or would a joint venture make for a better return?
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
'Twas the night before Christmas, a Boardroom or house,
Not a creature was stirring, not even a mouse;
The live traps were set by the chimney with care,
It’s showtime, Paul G, let’s get on the air;
Jamie Clement chimed in with Milo his cat,
The Boardroom opens up for a hot mic chat;
Listeners sent in questions and summoned the bookies;
Will Patrick give mad props to Milk Bottle Cookies?
Knowing when to sell can be tricky,
Will prices inflate or find themselves sticky?
Seismic re-ratings in the public market,
Could trigger owners to roll up the carpet.
The Top 3 players may outgrow the ninety-seven,
Aggressive offers could force concession;
Great questions come out on this inflationary climate,
Let’s light wads of cash like a government pirate,
Milo’s master purrs on about management teams,
While business fundamentals affect valuation extremes;
In-house or outsource your business capabilities?
2020’s Buzz word deserves its nobilities.
The clips proclaim ideas implemented,
It tops off a year that was unprecedented.
"Now, Todd! now, Daniel! now, Shane! now, Andy!
On, Ben! on, Stewart! on, Liz and Jesse!
Will multiples differ between resi- and commercial?
35 episodes so far, and some were controversial.
Future returns will depend on the vaccine,
We all cheer for the pest cash machine.
St. Paul G gives in to a geography question,
Patrick wants to know also via his confession—
As it gets closer to sell, what should be done?
Chuck Norris returns for another pun run.
Better asked, should it be what not to do?
Impairing your value, pre-Buzz, who knew?
Signing off for the year, The Buzz gets sentimental,
Big shout-out to Dylan for all things instrumental;
The Listeners, the guests, and guest co-hosts surround,
We do this for you. May your businesses compound!
We’ll return next year, there’s more to address,
Happy New Year! Happy Festivus! Everyone, God Bless!
Mark O’Hara stepped out to step up the family business. Is this wisdom for future generations of Buzz listeners? Mark served his time at both the US Army and Anheuser-Busch before rejoining Anderson Pest Solutions. Mark built on his non-pest experience to rise in the ranks at Anderson. His dad started it, his brother primed it, and Mark and his nephew, JT Barnard, scaled it. Mark and his nephew ultimately sold Anderson to Rentokil in 2015 with a $21M top-line mark.
People differentiate, not materials. Mark gives tangible examples of culture in this Boardroom conversation. Recruitment became a critical function as the business thrived. Mark tips his hand at a recruitment target outside of pest control. What is Mark’s take on leveraging employees’ relationships to grow the organization? What about recruiting from within the industry? He even shines light on the inevitable blinders surrounding employee interviews. Have you ever felt like sticking your neck out to hire someone? Mark suggests a solution for that.
It is hard to fathom building commercial sales machine without trials and tribulations. The conference room conversation doesn’t shy away from ‘sales vs service’. Town hall meetings, individual performance metrics, and committee feedback built the accountability culture. From grading leads to fixing funnel flow, Anderson’s sales process evolved. Patrick Quigley would be proud to hear that Mark refers to hot buttons and asking for the signature in this visit.
In battle-field fashion, Mark would often start new projects and then walk away. Mark’s entrepreneurial spirit led to switching course too often. It may not have been self-realized though. As ‘The Way of the Shepherd’ and ‘The 4 Disciplines of Execution’ were recommended to him, he gives his seal of approval to Buzz listeners.
When the Chicago climate suppressed pest pressure, how did Mark manage overtime discrimination? In Episode 5, Tony Sfreddo discussed segregating his commercial and residential technicians. How did Anderson structure its technicians’ routes? If Mark was dropped into a $2-3 million business today, how would he think about scaling that business? Tangible takeaways abound in this interview with another PCT Top 100 Great.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Exciting opportunities abound for David Billingsly, Shane Hoy, Ben Hoy, Jon Hoy, and the Pro Pacific Pest Control team. As Anticimex goes west, J. Peterman pays a special visit to congratulate Paul and The Mex aka Franco.
Guest co-host David 'General' Billingsly returns to discuss his new role at Anticimex, and is greeted with his new nickname. While David frowns on the nickname, it's the title ‘boss’ that gets him on the corporate soapbox. Speaking of titles, David welcomes Shane to the ‘employee’-side.
'Dollar Bill' David crosses the Mississippi to take the lead as Anticimex Western Region President while Shane has high hopes for DBigs' acquisition experience. What gold will they discover together in California?
Buying is the easy part, especially for David. He has a lot of experience acquiring businesses – 13 in total – while at American Pest. Paul and Shane ask him about lessons learned during integration.
Recently Anticimex entered Colorado and Arizona with Kevin Lemasters' EnviroPest and Dena Berg's Northwest Exterminating, respectively. Paul explains his take on what these acquisitions do for the West coast.
Shane discusses how he announced this acquisition to his staff well before the closing. Would this acquisition have happened for Pro Pacific if it wasn’t with Anticimex? What is the next chapter for Pro Pacific’s Cinderella story?
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
What could be worse : a multi-million dollar wiring snafu or another extortion at the closing? If that question is being posed, then you know it has been another long week in Paul's busiest M&A season. It sounds like these uninvited experiences will remind listeners of previous episode discussions.
Some acquirers are sitting on their announcements, but not Anticimex. AX is proud to announce its entry acquisition into California with PCT Top 100 Pro Pacific Pest Control. Congratulations to the Hoy Boys - Shane, Ben, and Jon! Did they really tell their staff a week before the deal finalized?
Paul has high hopes for freshly-appointed Terminix CEO Brett Ponton, but Paul is quick to recall when TMX fell from grace & left the client at the altar in the Fall of '19.
Looking forward into 2021 and 2022, how will Rentokil deploy its 50-basis point buying power? What new markets will open up for acquisitions? What can pest control businesses do as they look to sell in the next two years? Like a good preacher, Paul reinforces the future in contrast to the past. From preacher to professor, Paul puts on an economics class. Tune-in for a brief lesson from Consolidation 101.
Patrick has more buy-side vs sell-side questions. What happens when the 'green visor' buy-siders attempt to preempt process? In his tried and true Texas vernacular, Paul likens himself to a cattle auctioneer champion. Speaking of green visors, Cory “The Tax Nerd” Vargo steps in to answer listener-submitted questions on employee benefits as well as financing.
From co-host to guest, Paul appeared on Germany-based Talking Pest Management hosted by Daniel Schroeer. Patrick had some takeaways (and as always, some jealousy).
More road-show episodes are in the works. Paul and Patrick plan on crashing some upcoming U Group gatherings. New Orleans. Hawaii. Who knows? Paul's invitation will grant him access. Patrick may have to bribe his way in with some cookies. Also, Paul hints at another Stockholm trip for an EQT announcement, but will Patrick make it across the Pond this time?
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
Doug Stevenson and his brothers grew Modern Pest Services to $18 million before selling to Anticimex. It would be hard to find a process at Modern in which Doug did not include in a financial system.
Doug found himself entrenched in cost analysis study after study. It was his tenacity that helped 5x Modern's net income in one year. Adjustable initial service charges and subscription billing helped Modern weather New England seasons.
With a name like Modern, it's hard to avoid innovation. In the early 2000's, it was Doug who set the bar with PestPac routing & integrations. Doug recounts working with Griffin Pest's Jeff Spencer & Pam Blauvelt integrating VoiceShot with PestPac.
Although driven by spreadsheets and returns, Doug opens up about people, management, and corporate elbows. As structured as Doug is, he says that there is one trait that determines success in a business partnership. What is it?
There are several new buzzwords (-phrases) coming out of this episode :
- Elegant (complex) solutions to complex problems
- Financial predictability to strategic decision making
- ROI makes the world go-round
- Beware of shiny things
- Always more risk in a non-diversified portfolio
- Balance emotions with data
From WIPFLI Partner to Boardroom Buzz guest, Cory Vargo steps into this episode as a guest co-host. It was Doug Stevenson who gets 100% credit for introducing Cory to the pest control industry. Apparently, Doug set a high bar. Cory discusses that high bar as well as Doug's cash after tax black and white decisions.
Cory sticks around to shed light on the deferred revenue black box, cash vs accrual accounting methods, and shareholder partnership issues. He adds his opinion on scaling accounting capabilities with a growing business.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
If Scott Stevenson is the Senator, then Paul Giannamore is the Brother Whisperer. Paul has an epiphany moment as Scott turned the tables and questioned him about his custom communication methods.
As a third generation co-owner with brothers Doug and Rich, Scott takes us back to Modern's early days. Who knew it would involve repairing a toaster of all things?
In his twenties, Scott visited with Harvey Massey at Massey Services and Joe Thomas at Arrow Exterminators. These learning opportunities helped shape Modern's branch manager-centric structure. The Stevenson Brothers furthered their development by joining the ranks of Associated Pest and later The U Group.
It doesn't sound like much of a 'short straw', but one of the three brothers had to stay on post-Anticimex acquisition. Scott recalls his early days at Anticimex, and how he ranked against the global branches (and himself).
The Senator didn't overstay his welcome as a US-Sweden diplomat, in fact, he found himself as the VP of Operational Excellence. As a AX VP, Scott helped US Anticimex platforms balance best practices with their unique sales models.
Several Buzz-staples in this conversation, including subscription billing, service frequency, culture, and acquisitions.
From one RV'er to another. Court Parker is nearing 100-days on his Pest Control Technology and Control Solutions Inc road trip. Paul and Patrick invited Bug Busters USA CEO Court Parker into The Boardroom to discuss Senator-turned-Trailer Park Boy Scott. As a U Group co-founder, Court gives some history on his relationship with Scott and the peer group.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com
For more than twelve years, John Myers, Rentokil North America CEO, has scaled a regional pest control business into a national empire. John describes the nuanced difference between success and excellence as his company has grown.
John opens up about fear of failure, a trait he shares with Rentokil Initial CEO Andy Ransom. Speaking of Ransom. How does John talk about their relationship between flagship Rentokil NA and HQ in London?
As a serial acquirer, John goes into sales mode to describe their differentiated capabilities, including a very deliberate and choreographed due diligence process. John highlights the #1 consideration that Rentokil North America has as a buyer, which may remind you of Episode 14. Similar to Episode 17, Paul engages with John as if he was a $5 million pest control business CEO. This episode wouldn't be complete without first discussing route density, its benefits, and the 'best new customer'. Before engaging a new customer though, John stresses the importance of customer retention.
Listen to John discuss time spent on the front lines with specialists and customers. Paul describes the role of a CEO; even those that aren't in the PCT Top 100 top tier.
John doesn't shy away from responding to what wasn't all good with "Allgood" as well as room for improvement with regard to mosquito and tick opportunities. Patrick didn't fail to ask John about brand equity. It turns out that in the future when asked this same question, John can reference this episode.
Not a week goes by where Paul and Patrick don’t hear about Episode 10 with Mike Rogers (if you haven’t listened to that episode, you might want to before you listen to this one).
Any Buzz listener would agree that Mike is the kind of guy that you want to hang out with and chat about life and business. No stranger to automobile love affairs, the road trip was made complete with Dylan making the drive down from Tennessee.
After spending time in Mike’s collector car showcase, the Rogers’ dining room table transformed into a recording studio to the benefit of Buzz bingers. Not only did it make for great coffee talk with a repeat guest, but the brains (and emotional stability) behind Killingsworth joined in on our Buzz banter. You’ll even hear Marley, the five-month old labradoodle, make his Buzz debut.
What tales didn’t make the Episode 10 tapes? Which stories are worth revisiting with Debbie’s joyful laugh? As the Killingsworth Kouple reminisce on their business and life together, they dish out sage advice on business, life and relationships as well as incredibly funny stories of the early years in unlicensed pest control.
At the end of the episode, Paul finally confronts Makenzie, the talent behind Milk Bottle Cookies. Does Paul endorse the infamous cookie, enraging the Mex, or does he cast aside Patrick’s not-so-secret pleasure, winning the Mex’s praise?
Patrick’s takeaway : before returning to Charlotte, learn to drive a stick shift.
Jeremy Kreer grew up in a family pest control business. Jeremy opens up about Advanced Pest Management’s operations behind closed doors. All seems on-track for future generations until Jeremy’s parents go through a divorce. Dealt a bad hand, how did Jeremy buy out his Mom’s shares, and how did that affect the family dynamic?
To drive the wedge even further, how did Jeremy’s dad respect Jeremy as a business leader? Enter Nam, Jeremy’s brother, full-time in the business. Paul remembers Nam as a rockstar salesman, but as the business transitioned to Jeremy and Nam, how would it affect their relationship? To further complicate the 3rd generation ownership, what about relationships with their siblings?
Did the extracurricular dynamics call for extra TLC when it was time to sell? What about awkward explanations with potential suitors?
Flashback to previous conversations on the Buzz — On Episode 11, Paul spoke about shareholder objectives. The Kreer family dynamic reinforces the importance of aligned business partners. Jeff Annis and Dena Thomas discussed their open book management on Episode 22. Consider forced transparency as doubt creeps in.
As another 3rd generation business owner, Go-Forth Pest Control CEO Chase Hazelwood, joined us to give his input on Jeremy’s story. It is interesting to hear how the Kreer family’s story may affect Chase’s business planning.
How do you make a show about tax more exciting? That is a low bar, but Paul and Patrick invited Dylan Seals to spice it up. Dylan literally hears every cough, um, and extracurricular story. The audio engineer keeps the Boardroom Buzz out of trouble. It’s interesting to hear what Dylan has picked up that Paul and Patrick have put down.
Straight out of the gate, Cory Vargo isn’t afraid to address the upcoming presidential election’s impact on taxes. How could a change in politics overhaul tax laws and the economy?
But who is Cory? Before WIPFLI became a Top 20 accounting firm, Modern Pest Services CFO, Doug Stevenson, retained Cory Vargo to break a tie between two other tax advisor opinions. What started as a job well done for the Stevenson brothers, has led to Paul involving Cory on several multi-million dollar pest control M&A transactions. It begs to ask the question : Why do PCT Top 100 companies choose to add Cory to their strategic team even after long established tax advisor relationships?
Pop quiz, Hot Shot… Paul shoots a pop quiz in Cory’s direction : “How might a taxing authority say, well, wait second, you've been in business two years. You've got a bunch of customers. You're selling those customers. They're under some sort of contract, but you want us to tax you capital gains. We want to tax you as ordinary income. Can you imagine why that would be the case?“ Does Cory’s answer meet Paul’s experienced expectations?
Creative and tax are two words not often found in the same sentence. How did Cory construct a reorganization to save a seller from paying $2.5 million in taxes?
As the episode guest count increases so has Patrick’s intrigue about CFOs. Patrick asks Cory how adding a fractional CFO adds to the bottom line, and Paul helps clarify controller and CFO roles.
Stock purchase vs asset purchase, and why. Enter Episode 5 star Tony Sfreddo’s Triple S case study. Is your pest control business currently a C-Corp and considering making a S-election? Want to avoid paying punitive fees to the IRS? Listen now.
It is one thing to look at the best industry performers, but what happens when you dig deeper into profit and loss statements?
Anticimex CEO Jarl Dahlfors attended ‘Pest World Congress in Nashville USA’ to research best in class in the industry to understand what was possible for Anticimex. Paul explains how Jarl now focuses on internal benchmarking. Taking a play from Michael Porter’s value chain analysis, Paul breaks down benchmarking like Jarl would at Anticimex.
Paul is going to release a standardized P&L chart of accounts for The Boardroom Buzz listeners. Where does margin development max out in the pest control industry? Apples to apples : compare margins with other pest control owners and world-class companies.
One of Paul's current sell-side clients recently spoke to a potential acquirer that operates in his area :“I don't even care about what you guys do. I don't even pay attention to what you guys do... I'm a market leader and sometimes market leaders have to forget what the competition is doing and they just have to get out and lead.”
Talk about not biting the hands that feed you… how do employee [unexpected] emotions change after an acquisition? Also, what is the importance of the last three years before selling?
The Buzz’s pilot episode was ‘Deals, Contingencies, and Gotchas’. Listen to Paul’s new take on due diligence and his stance on contingencies. Speaking of due diligence gone awry, who is to blame for attrition after Terminix acquired Alterra? Oil and water don’t mix. How could foosball-playing, segway-riding, hipster kids integrate with Terminex guys, or was the culture clash inevitable?
Paul answers several listener-submitted questions, including :
Provide a little more insight into Anticimex’s benchmarking process. How does it actually work in practice and how can I utilize it in my own business?
Assuming it would be Anticimex, will Jarl eventually transition the US brands into one brand?
With acquisitions in general, what are the first priorities in transitioning employees and customers to the new brand (assuming a brand change) or management?
To put yourself on the list to receive the pest control P&L chart of accounts, send an email to theBuzz@potomaccompany.com
Jim McHale's dad knew his way around the bars. He cleaned beer taps when he wasn't logging hours at New York's Sing Sing maximum security prison. The prison guard network jumpstarted the family into finishing at #32 on the PCT 100 before selling to Anticimex in 2019.
In this episode, Cornell grads, Jim and Paul, continue their banter from their 10+ year relationship.
Conducting skip meetings and measuring Employee Net Promoter Score (eNPS) are two ways that Jim engages his front-line employees. You will hear him preach the importance of relationships in a pest control business while unifying a diverse JP McHale culture.
Imagine the countless questions over the years :
'Jim / Jimmy / Mr. Jim / Mr. Jimmy / Mr. McHale, this happened : ____________. What should we do?' No matter how you refer to Jim, his response will not delineate [shouldn’t this be deviate rather than delineate?] from 'What's best for the client?'. The Buzz suspects this is JP McHale's Golden Rule.
Unique capabilities include JP McHale Pest Management's 'Inner Circle' concierge service. Why wouldn't you when you have customers paying upwards of $27,000 per year - yes, a residential client. What are Jim's thoughts about pre-billing customers for the year?
Jim gets real about his family's multi-generational business. Without pause, Jim recites Martin Luther King, Jr. as a glimpse of the behind-the-scenes realities.
Jim stresses the need to differentiate in a commoditized business. He continues to chase marketing, branding, innovation, and technology now as an Anticimex platform.
When I think about Jim McHale, I think about “innovation around the edges,” says Paul, “the guy has really mastered making the ordinary, well, extraordinary.”
Jim’s humility plays out as the episode unfolds. He gives credit where credit is due. This list may not be exhaustive either:
Patrick McCauley
Bernie Herman
Bill Thompson
Gil Bloom
Dr. Austin Frishman
Doug McHale
Rich McHale
Dr. Jeff Scott
Dr. Ed Raffensperger
Shaun Coen
Frank Trediti
Mike Palmietto
Lenny Gray
McKay Bodily
Jarl Dahlfors
Wallenberg family
Tony Ramirez
Tony Fortunato
Tom Pederson
Bob Sameth
Norm Cooper
Bob Suriano
David Billingsly
Tony Yochum
David Locke
Brian Alexson
Albert Cantu
Norm Goldenberg
Matt Nixon
Irwin Noval
Robert Seeger
Mohit Kansal
Paul Bergmann
Mikael Vinje
Steve Good
Finally, Paul references Ethan Vickery and Ronen Amichai at VM Products and PESTOPTIX.
Paul literally steps into Anticimex's boardroom in Stockholm and sits down face-to-face with CEO Jarl Dahlfors, for this intimate and hard-hitting interview. Although Paul prides himself in being the preeminent, global expert on pest control valuation and M&A, our team here at The Boardroom Buzz is wondering if he missed his calling as a 20/20 journalist.
As CEO of Loomis, Jarl turned a low-performing business into the darling of the cash management and armored car services industry by decentralizing its business model and changing its culture. As head of a direct competitor of Brinks, it was Jarl who dethroned at least two Brinks’s CEOs – according to equity research analyst Jamie Clement – earning Jarl the 'Swedish Beast' moniker.
In the middle of an extremely successful career in the security industry, EQT, owner of Anticimex tapped Jarl to do what he does best, shake up and decentralize a sleepy Nordic business that had been around for almost a century.
Decentralizing Loomis paid dividends for him, but how would that play out in another similar route-based business? Jarl battled his critics, but he could see that there was so much more potential for quality, profit, and growth. As the “protector of the branch manager”, Jarl decentralized Anticimex, established benchmarking protocol and has lead his highly-motivated team in building one of the largest pest control companies in the world.
Following the interview, Paul and Patrick are joined by guest co-host David Billingsly, President at American Pest, for additional commentary on what it’s like to be a “country” president at Anticimex.
High pricing for pest control got Svein Olav’s attention as COO of Swedish retail coffee chain, Espresso House. Little did he know that he’d follow the white rabbit into pest control ownership, and bring a company back from the brink of bankruptcy.
After taking over as Nomor’s CEO, Svein Olav quickly made the rounds conducting interviews with both employees and customers. His employees didn’t know what they wanted, but Svein Olav knew what they needed.
Svein Olav resurrected a ‘given up’ culture. Take notes on his unique insights on female employees, language diversity, fitness, pay for performance, and celebrating success. The underdog, Nomor, grew to be the 4th largest pest control company in Europe and solid competitor with capabilities to service Sweden’s insurance demands.
Nomor’s turn around tale is one for the ages.
Potomac advised Nomor on its sale to ServiceMaster in 2019. The transaction was nominated for Nordic M&A deal of the year.
Jeff Annis avoided pest control growing up. In fact, it’s the last thing on earth that he would choose to do. Which path led Jeff to building a flagship company in Augusta, Georgia?
If you could summarize Jeff Annis and Dena Thomas’s business, Advanced Services, then it may be unique. Or it could be innovation. Or it could be culture. Maybe it’s accountability. It’s hard to pin down a single takeaway from their sustainable success. Jeff’s TedX talk gives extra insight on his core belief of ‘great, not big’.
Taking a page from Zingerman’s Deli, their open book accounting method sets them apart. Listen how their employee buy-in has taken them to a new level of profitability.
If you can pass their core value test, video job interviews, random pre-employments drug screenings, and ride alongs, then you may find yourself a self-selecting profit sharing participant.
Stick around for the post-Boardroom franchise discussion. The franchise chat quickly spun into Paul and Patrick scratching the surface on partnerships in pest control.
As you can imagine, only a few people ever dream or imagine of getting into pest control as a career. Joe definitely took a unique path for his world to collide with the pest industry.
Although law school was Joe’s best idea after hanging up his uniform, he found himself at Harvard Business School where he adapted by learning from his private equity and consulting experienced classmates.
Paul and Joe revisit their early conversations as Joe was looking to go from no pest control background to owning a $3.5 million business. Joe shares the risks and realities of stepping into a business sight unseen.
Also, Paul gives answers as Buzz listeners have asked about the M&A environment in this COVID climate.
Brandon Hier recalls his experience responding to the responsibilities he inherited when his dad passed away and then ultimately selling the family business five years later.
As a young teen, Brandon donned a respirator as he followed in his father's footsteps. His life took a turn as he shelved his college education to return home to run the business. Brandon was thrust into an impossible work-life balance as he struggled to build the family business in his father's absence.
Not only did Brandon take the leadership position at the family pest control company, but to further the matter, he found himself responsible for his mother’s financial future and retirement.
Join Paul and Patrick, as Brandon looks back on his time running the family business, selling it and ultimately exceeding expectations with his new life at Rentokil.
Paul and Patrick also chat about ServiceMaster selling their Brands business to do pure play pest.
Private equity has demonstrated increasing interest in the pest control industry. What’s the draw for the Clairvest Canuck combo of Michael Castellarin and Mohit Kansal? How much longer must they eagerly wait before the right opportunity presents itself? Now, if only Patrick can properly pronounce their names…
Paul is familiar with private equity’s ‘second bite of the apple’ cliché, but is it appetizing enough for Patrick and his Texas firm?
How does Clairvest’s investment thesis and strategy line up with previous Buzz guest & Wall Street equity analyst Tim Mulrooney’s?
If angels endorsed Episode 19, you would hear them singing about Michael Porter soft-circling capabilities to bite apples with synergy during M&A season, and how that affects shareholder goals and objectives who may self-select.
As a side note, Patrick already has plans to chat more with the Clairvest combination to fund his Choctaw Land Casino plans.
Guest Contact Info
Michael Castellarin / michaelc@clairvest.com
Mohit Kansal / mohitk@clairvest.com
As newly minted grads from the University of Georgia, the world was their oyster. But finding themselves in careers that no longer excited them, they decided to head off into the world…ending up in the US Virgin Islands working at a diner.
After retiring to St. John in their early 20s, they decided it was time to make their mark on the business world by taking over their father’s pest control “business.”
In this episode, we learn how these two brothers took their father’s $250K “business” and grew it to over $7M in revenue and multiple years on the Inc. 5,000, PCT Top 100 and Bulldog 100. We also learn what’s it like to run a business with your brother and ultimately sell it to a publicly-traded company.
The story of Inspect-All Services is a tale of inspiration, trial and error, and family business.
What would these brothers have done differently looking back? How did they grow one of the fastest growing companies in America? In listening to their story you’ll quickly realize why Paul says, “If I were shipwrecked on a tropical island, I would definitely want to be surrounded by only women, but if there had to be two guys on the island, I’d want it to be Brian and Brandon.”
Paul and Patrick start the show by celebrating The Buzz’s #1 business podcast ranking in Seychelles.
Episode 14 — Buy-Side: “The Opposite” tipped the scales with listener questions. Patrick thought the he could one-up Paul by blindsiding him with a question or two from the mailroom, but Paul rope-a-doped with an extended sell-side role play scenario.
Sell-Side Sensei and M&A Master Paul Giannamore took Patrick to school. Patrick may have made a fool of himself (again), but he’s recovering after tapping out. There is a lot more at play than just negotiating money and terms. Controlling the process is the key to superior results.
Sitting alongside his fellow Boardroom Buzz listeners (learners), Patrick does his best to keep up in the negotiation role play.
With Monopoly money on the line, you can still hear Patrick sweating through the microphone as the interrogation goes into overtime, while Paul exercises grace and patience with his white-belt student.
Brett Ponton is rolling out of rubber retail into the revolving ServiceMaster CEO seat. Does he check guest co-host and EPS M&A Director Andrew Barrow’s boxes, or will the Board be calling in their own retreat?
Paul doesn’t always agree with return guest Jamie Clement, but Paul gives his ‘million percent’ ( 💯 ^ 💯 ^ 💯) approval of Jamie’s take on a company going public.
Speaking of going public, COULD Patrick take his company public through an intrastate offering? Also, what’s more likely to happen to a company in the top 10 than going public?
While there are similar views on taking a pest control company public, is discussing innovation going to divide the four-bald-guy-clan?
The Nords have immigrated to the States, but will they bring their socialized pest control with them?
Did somebody mention Copesan? Where will that rabbit trail lead us?
Stay tuned-in for the great debate of acquisitions. What makes them accretive? How can one bad deal ruin the bunch? With 30 of his own executed deals, Andrew isn’t slow to share his opinion on the matter.
Do not grow weary of Paul’s spaced repetition : companies with legit capabilities...
Of course this Jamie Clement episode wouldn’t be complete without a few sports analogies thrown-in.
Asset managers, hedge funds and private equity firms, collectively managing almost $1 trillion, call on Tim Mulrooney for his investment advice. As William Blair’s service analyst, he covers 20 stocks, but spends more than 50% of his time focusing on the pest control and three key players, Rollins, ServiceMaster and Ecolab.
Tim and Paul have debated valuation, asset price inflation, industry growth and fundamentals for years, but today he joins Paul and Patrick on The Buzz.
When Tim isn’t consuming The Boardroom Buzz, he’s consuming Milk Bottle Cookies. And when he isn’t consuming cookies, he is shopping for pest control services to test providers — rotating service providers as often as a termite swarm.
In an episode that barely squeaked by Tim’s compliance department, join Paul and Patrick as Tim details his thesis on the growth of the pest control industry and what he’s telling investors about where to put their money.
Email Tim for access to his freshly released report (tmulrooney@williamblair.com)
For nine years, Patrick has asked Paul about buy-side M&A in order to grow his Texas-based pest control firm. While Patrick knows that Paul’s true love is sell-side advisory, he also knows that Paul used to work for one of the largest buyout shops in the world and has advised publicly-traded companies on setting up their M&A departments and buy-side M&A processes – such as valuation modeling and negotiation strategy. But Patrick is extremely persistent…
Patrick: Paul, what about buy-
Paul: No
Patrick: What’s up Paul? I was looking at this potential acquisition..
Paul: Why do I even answer your calls?
Patrick: Hey, when should we think about buying...
Paul: {Click}
Patrick: Paul? Paul? Are you there?
The good news is, our listeners have sent in a ton of buy-side questions that Paul can no longer avoid. So under the guise of listener-submitted questions, Patrick slid in some of his own questions, finally to be answered.
Listeners asked about: how acquisitions turn out years later, how a privately-held pest control company can access the corporate bond market, but most importantly, listeners wanted to know how they can create value by doing small acquisitions themselves, which is the core of the discussion today.
A perfect combination of simplicity, bottom-feeding, timing and relationship-building may get you in the door, but how do you get a good entry price? After recording, Patrick realized that this is only the tip of the iceberg on the buy-side of M&A in the pest control industry.
Cookie count: 2
Seinfeld references: 1
Industry colleague Andrew Barrows, head of M&A at Environmental Pest Service, joins The Buzz this week as guest co-host to interview equity research analyst Jamie Clement.
When Andrew listened to Episode 6, he contacted Paul and Patrick and said that he wished he had been in the room with them to talk shop with Jamie. This week, his wish was granted. He was brought on The Buzz for a lively discussion with Paul, Patrick and Jamie.
Patrick and Paul decided to make the first half of the interview a standalone episode because it dealt with one topic, TruGreen’s recent announcement that it had entered the pest control industry. The second half of the interview, covering a variety of topics, will be released soon.
In this Episode, Patrick and Paul discuss Terminix Commercial pulling millions of dollars in Copesan accounts from Copesan partners and affiliates, Potomac's Nomor transaction being nominated for European Transaction of the Year in the Nordic Region, three kinds of benchmarking (internal, competitive and world class), the subjective nature of value and its impact on incentive structures.... and also a rogue, naked technician with a pool cue in his behind.
The Boardroom Buzz was recently added to the short list of pest control podcasts at Feedspot.
Attorney Mike Stanczyk has advised on over a dozen transactions in the pest control industry, many of them with Potomac. Paul and Patrick along with Mike, discuss the expertise that a specialist attorney brings to the table when the stakes are high.
Mike’s practice focuses on transactional law issues, including mergers and acquisitions, buying partners in and out of operating entities, executive compensation, intellectual property, contracts, and compliance issues. Mike's firm also provides tax counseling, trust formation, economic incentives and real estate services.
Mike Stanczyk is a partner at Lynn D’Elia Temes and Stanczyk, a boutique business law firm with offices in Syracuse New York and New York City.
Paul and Patrick respond to two PCT Top 100 listener questions with a previously glossed-over term from Episode 3, proximate objectives. By the way, what are proximate objectives? Don’t worry, Patrick asks for you.
The strategic acquirers are doing some thing(s) right, depending on the company, the point-of-view, and apparently what today’s date is. Does it matter? We drop a few names such as Rentokil’s Andy Ransom and Certus CEO (and Episode 7 guest), Mike Givlin.
Topics include : Aligning shareholder goals and objectives for your business, preparing a business for an acquisition anticipates all potential exit outcomes, and benchmarking local pricing.
Have you considered selling off distant routes to increase route density and in turn your gross margin? We discuss that in today's episode.
P.S. What does Chuck Norris have to do with pest control?
Mike Rogers started Killingsworth Environmental of Charlotte in a double-wide trailer. Who could have imagined that a high school-educated Rogers, would end up turning his street smart salesmanship into a multi-faceted multi-million dollar conglomerate?
Mike took the leap and bought out the owners when Killingsworth was at $5 million in revenue. Within a decade, he grew the business to almost $24 million in revenue, 182 employees, 156 vehicles and 11 service centers – including a 38,000 square foot; ahem, 138,000 square foot - corporate center. In 2018, Maverick Mike sold his #37 on the PCT Top 100 business to Anticimex.
Mike discusses key performance indicators such as his ‘gross profit per man day’, ranking employees & customers, managing chemical costs, vehicle longevity, and much more. Sit back and join Patrick and Paul as they learn from story-master Mike as he opens up about his humble beginnings and venture into wealth.
Patrick and Paul’s longtime friends Lenny Gray (author of Door-to-Door Millionaire) and McKay Bodily (author of some emails and a birthday card) – partners at Rove Pest Control -- sit down to a surprising discussion on door-to-door trends over the last quarter century. What do these businesses sell for? What is the future of door-to-door sales in pest control? While Paul hates door-to-door sales, he loves enriching his clients and continues to advise on more door-to-door transactions ($250m+) than anyone else on the planet and is responsible for driving up the prices of these businesses… but what are his thoughts on future valuations in the space? And finally, we learn that Patrick, the traditionalist, almost started doing door-to-door at his firm in Texas.
In this episode, Paul and Patrick answer listeners’ questions and discuss topics that were raised in previous episodes with Tony Sfreddo, Mike Givlin and Jamie Clement.
Topics include: Understanding what drives acquirers to make acquisitions and how value is created by a business combination. Making the hard decision to say “no” to too many disparate service offerings. The advantages of decoupling service from billing. What do acquirers look for in acquisition targets and why you shouldn’t really care. Should Anticimex’s portfolio company Killingsworth really start offering food delivery and medical services? And finally, is Rollins, the parent company of Orkin, really for sale?
When he’s not making maple syrup snow candy, sipping barely-drinkable coffee at Tim Horton’s, or waiting in a long line at Health Canada for his flu shot, Mike Givlin, CEO of Certus, is building the next US national pest control firm. In this episode, Paul Giannamore and Patrick Baldwin find out what it’s really like to raise private equity funding to build a business. In this interview, Mike holds nothing back, discussing his career trajectory and how he and his team are striving to put people first as they execute a buy-and-build strategy in the pest control industry.
James Clement has worked on Wall Street for investment banking and research institutions for over two decades, providing actionable insight to hedge funds and institutional investors on pest control and other industries. He is an important part of Paul’s inner circle and one of his go-to guys for insight on pest control and other industries. For many years, the two have debated valuation, value creation and M&A in the pest control industry privately, and today you’ll listen in on one of their discussions. In this new segment, Patrick Baldwin and Paul Giannamore Step Outside of the Boardroom for a lively discussion on: valuation multiples, private equity firms EQT and GIC, Rentokil emerging from the COVID pandemic, Rollins’s consistency, ServiceMaster’s future and possible takeover, Anticimex’s CEO Jarl Dahlfors’ history as the Blonde Beast -- bringing Brinks’ former management team to its knees when he ran Loomis in the US -- and a whole lot more. This episode is a behind-the-scenes look at what is going on at the highest levels in the pest control industry.
The Boardroom Buzz kicks off a new segment, Step Into the Boardroom, with former CEO of Triple S Services, Tony Sfreddo. Prior to selling Triple S to Anticimex, Tony and his brother Phil built the business into a commercial powerhouse in the Washington, DC metro area generating $267,000 in revenue per technician per year. Servicing accounts such as the Pentagon, the CIA, and the US Supreme Court, Triple S reached number #68 on the PCT Top 100 list prior to the sale. In this hard-hitting interview, Paul Giannamore and Patrick Baldwin get schooled by Tony on route density, commercial sales, technician compensation, competition, management and what Tony would have done differently if he were to do it all over again.
Paul and Patrick discuss the importance of stay bonuses, and how one management team tried to extort $1 million from a seller at the closing of the sale of his pest control business. We also learn about what happened to the family of a seller who died of a heart attack the day before the sale of his business. Patrick and Paul also talk about the closing of Project Warrior with Certus last week and how activist hedge fund, Third Point, has acquired a 3.1 million share stake in ServiceMaster. Does this mean that ServiceMaster will be taken private or acquired?
Paul Giannamore and Patrick Baldwin respond to "What makes a firm more valuable?" question submitted from the AFTERMATH presentation. They also take a step back into how they first met eight years ago when Patrick called on Paul to do a valuation (appraisal) for his pest control business.
Paul Giannamore and Patrick Baldwin discuss where money will end up after the COVID-19 pandemic. How will essential service businesses look for investors in the long-run? Pest control is an essential business. Will investors shift their portfolios to 'de-risked' industries because of Covid-19?
How will the pandemic affect future pest control acquisitions? Will this shift valuations on residential vs commercial segments?
Will the DOW return to its pre-COVID-19 high?
Paul Giannamore and Patrick Baldwin chat about how pest control transactions are structured differently.
What happens after the sale... after Paul's first pest control deal in 2003, what happened after the close?
Patrick and Paul also talk about "taking a lump sum in a duffle bag and the proper way to 'make it rain' when you're at an underground Romanian rave".