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Pest Control Industry Update – Q1 2025

Sell Your Pest Control Business in Texas | Lion Business Brokers

Valuation Trends, Buyer Demand & What Texas Pest Control Business Owners Should Know

The Market Remains Strong — But Buyers Are More Selective

As we wrap up Q1 2025, the pest control industry across Texas continues to attract interest from both individual buyers and regional acquirers. Demand is particularly strong in major metros and growing suburban areas, where recurring revenue and essential services make pest control businesses attractive, resilient investments.

That said, buyers are doing more homework than ever. They’re seeking businesses with consistent contracts, clean books, and a team that can stick around after the sale.


Valuation Multiples: What Pest Control Companies Are Selling For in 2025

We’re seeing solid multiples for pest control companies with established recurring service plans, well-documented operations, and minimal owner reliance. Here’s how things are trending:

Business Profile Common Multiple Notes
Residential Route-Based (SDE) 2.5x–3.5x SDE Recurring monthly/quarterly contracts drive value
Mixed Residential & Commercial (EBITDA) 3.5x–4.5x EBITDA Premium for commercial contracts and strong margins
Termite-Heavy or Seasonal Models 1.5x–2.5x SDE Less predictability = valuation discounts

 Businesses with automated billing, route optimization software, and loyal techs command higher offers.


Buyer Profile: Who’s Buying Pest Control Businesses Right Now?

In Q1 2025, we’re seeing strong buyer interest from:

  • Local entrepreneurs leaving corporate jobs to buy their first business

  • Existing pest control companies looking to expand service areas or acquire routes

  • Regional acquirers and PE-backed roll-up groups (though more selective than in 2023–24)

Buyers are prioritizing:

  • Recurring residential or commercial service agreements

  • Licensing held by team members (not just the owner)

  • Digital systems (CRM, billing, scheduling)

  • Owners willing to support a short transition (30–90 days)


Common Issues That Hurt Value

Even solid pest control businesses can lose value if not properly prepared for sale. The top three pitfalls we’re seeing:

  1. Messy or outdated financials – If you’re still running a mix of paper invoices and handwritten logs, it’s time to clean up your reporting.

  2. All customer relationships tied to the owner – If your name is the brand, it can be hard to transfer trust to a new buyer.

  3. Team instability – High turnover or a shortage of licensed techs will raise red flags.


Texas Hot Spots for Pest Control M&A in Q1

We’re seeing above-average buyer demand in:

  • Austin & San Antonio – Especially for route-based residential businesses

  • DFW Suburbs – Commercial contract demand is strong

  • Houston Metro – High-growth areas with stable populations and mosquito/termite service opportunities

  • East Texas & Rural Regions – Niche opportunities for acquirers looking beyond major cities


Should You Sell in 2025?

If you’re nearing retirement, feeling burned out, or simply curious what your pest control business might be worth, Q2 2025 could be the perfect time to act. Interest rates have stabilized, buyer confidence is high, and strong recurring revenue businesses are still commanding great prices.

Even if your ideal timeline is 1–2 years out, starting the planning process now gives you more leverage when the time comes.


🎯 Next Steps for Pest Control Business Owners

We offer confidential, no-pressure consultations to help you understand what your business is worth and how to start preparing for a sale — whether it’s this year or further down the road.

👉 Schedule Your Exit Consultation Today
📩 Or email us at info@lionbusinessbrokers.com


Lion Business Brokers is the trusted advisor for owner-operated, founder-led businesses across Texas — including pest control, HVAC, electrical, and other service industries. Stay tuned for our Q2 2025 Pest Control Industry Update for the latest trends.