Buyer & Seller Guide
Pest Control Business Due Diligence Checklist
What to request, what to verify, and what red flags to watch for in a pest control business acquisition. Use this as your starting framework — every deal has unique considerations.
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Financial Records
- ☐3 years of Profit & Loss statements (monthly detail preferred)
- ☐3 years of federal tax returns (business and personal)
- ☐Current year YTD P&L and comparison to prior year
- ☐Balance sheet (current and prior 2 years)
- ☐Accounts receivable aging report
- ☐Bank statements — 12 months
- ☐SDE calculation with documented add-backs
- ☐Owner compensation schedule (W-2s, distributions)
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Customer & Account Data
- ☐Customer list with service frequency, start date, and monthly revenue
- ☐Annual attrition rate — rolling 12 months and 3-year trend
- ☐Top 20 customers by revenue with concentration analysis
- ☐Termite bond/renewal book — contract count, annual revenue, renewal rate
- ☐Commercial service agreements and contract terms
- ☐Customer acquisition source breakdown
- ☐Average revenue per account by service type
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Operations & Routes
- ☐Route map with territory coverage
- ☐Number of active routes and stops per route
- ☐Revenue per truck per day (average)
- ☐Route management software access (PestRoutes, FieldRoutes, PestPac)
- ☐Scheduling and dispatch procedures
- ☐Service completion and callback rate
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Licensing & Compliance
- ☐Current pesticide applicator licenses — all states where operating
- ☐Business license and state registrations
- ☐Fumigation license (if applicable)
- ☐WDO inspection license (if applicable)
- ☐Regulatory inspection history — last 3 years
- ☐Any violations, consent orders, or enforcement actions
- ☐EPA registration numbers (if applicable)
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Fleet & Equipment
- ☐Vehicle list with year, make, model, mileage
- ☐Vehicle titles and lien status
- ☐Maintenance records — last 24 months
- ☐Chemical inventory and storage compliance
- ☐Equipment list (sprayers, monitors, bait stations)
- ☐Lease agreements for equipment or vehicles (if any)
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People & HR
- ☐Employee roster with title, tenure, certifications, and compensation
- ☐Technician turnover rate — rolling 12 months
- ☐Non-compete and non-solicitation agreements
- ☐Owner's weekly hours and role description
- ☐Org chart showing reporting structure
- ☐Any pending HR claims or employment disputes
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Legal & Risk
- ☐Corporate structure (LLC, S-corp, C-corp) and formation documents
- ☐Any pending or threatened litigation
- ☐Insurance certificates — general liability, auto, workers' comp
- ☐Claims history — last 3 years
- ☐Environmental incidents or spill reports
- ☐Contracts with suppliers, landlords, or third parties
Red Flags That Should Give You Pause
⚠️ Customer concentration: one client > 20% of revenue
⚠️ Declining revenue in most recent completed year
⚠️ Attrition rate > 25% annually
⚠️ Licensing gaps or recent violations
⚠️ Undocumented add-backs or inconsistent P&Ls vs tax returns
⚠️ Owner is sole licensed applicator with no successor plan
⚠️ Fleet average age > 8 years with poor maintenance records
⚠️ Verbal-only commercial contracts (no written agreements)
⚠️ No route management software — all data in owner's head
⚠️ Revenue concentration in a single service type or single geography
Red flags don't necessarily kill a deal — but they require explanation, documentation, or price adjustment. A specialist broker helps you navigate each one.
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