Wednesday, May 4, 2022

Industry up 13.3 percent over March 2022, per Blair/PCO M&A Specialists index

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The William Blair/PCO M&A Specialists Pest Index is a proprietary index of the monthly sales for 140 different U.S. pest control companies across 30 states. For March 2022, the total U.S. pest index increased 13.3 percent year-over-year, which is down from the high-teens growth observed over the last six months.

On a sequential basis (from February 2022 to March 2022), the index increased by 18 percent, in line with normal seasonal trends. As expected, the index decelerated in March due to more difficult comparisons with last year. This index includes recurring and nonrecurring revenue for residential pest, commercial pest and termite. It does not include residential door-to-door companies.

“Based on our conversations with privately held companies, we believe the strength is due to a combination of higher pricing, improved customer retention and a step-up in new customer accounts last year,” said William Blair Equity Researcher Tim Mulrooney. “The two-year compound annual growth rate in March 2022 was 16 percent, driven by increased market penetration rates over the last two years.”

PCO M&A Specialists/PCO Bookkeepers Managing Member Dan Gordon, CPA, added, “We are extremely proud of the index, which we have been reporting on since August 2020, and has been back tested to August of 2017. Its correlation to the quarterly growth numbers reported by the publicly traded pest companies is highly predictive and extremely useful to analysts and industry participants.” Gordon is also Pest Management Professional magazine’s financial columnist.

March’s performance was driven by strong year-over-year growth across all four subindices (residential, commercial, termite and bed bug).

The Residential Pest Index increased 16 percent year-over-year and 17 percent on a sequential basis. The Commercial Pest Index increased 14 percent year-over-year and 11 percent on a sequential basis. The Wood Destroying (Termite) Index increased 7 percent year-over-year and 32 percent on a sequential basis. The Bed Bug Index increased 16 percent year-over-year and 30 percent on a sequential basis.

View the full report and the archive of past reports at SellMyPCOBusiness.com.

The post Industry up 13.3 percent over March 2022, per Blair/PCO M&A Specialists index appeared first on Pest Management Professional.



from Pest Management Professional https://www.mypmp.net/2022/05/04/industry-up-13-3-percent-over-march-2022-per-blair-pco-ma-specialists-index/
Sacramento CA

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