The short answer: Small pest control companies sell for about 2.35× SDE, a company with $175K SDE prices near $411K. With an SBA 7(a) loan you put down roughly 10% (~$41K) plus closing costs, fleet reserves, and working capital. Pay top-of-range only for a high recurring-route share; account separately for termite/WDO warranty liability.
Purchase price by company size
| Revenue | SDE (~22%) | Price @ 2.35× SDE | Buyer type |
|---|---|---|---|
| $350,000 | $77,000 | $180,950 | Owner-operator |
| $700,000 | $154,000 | $361,900 | Owner-operator |
| $1,500,000 | $330,000 | $775,500 | Small platform / roll-up target |
Small deals anchor at ~2.35× SDE; large recurring-heavy books get repriced on EBITDA by consolidators, sometimes at 7×, 12×. That spread is your exit opportunity, buy on SDE, grow the recurring base, sell to a roll-up. See live comps on the pest control multiples page.
What moves the multiple
| Pushes multiple up | Pushes multiple down |
|---|---|
| High recurring-route share, low cancellation | Reliance on one-time treatments |
| Dense, efficient routes | Scattered accounts, high drive time |
| Certified applicators staying post-close | Owner is the only licensed applicator |
| Clean warranty/claims history | Large open termite/WDO warranty book |
Down payment & the full cost stack
- Equity injection, ~10% of project cost; a standby seller note can count toward part of it.
- SBA + closing fees, guaranty fee, packaging, closing costs.
- Fleet & equipment reserve, trucks and spray rigs age; budget replacement.
- Working capital, payroll, chemicals, and fuel between service and collection.
- Warranty liability, reserve or indemnify for outstanding termite/WDO obligations.
Warranty liability isn't in the multiple
A 2.35× SDE price values the cash flow, not the tail of outstanding termite bonds. Treat open warranties as a separate line, reserve for them or push the seller to indemnify.
A worked deal
You buy a company with $700,000 revenue and $154,000 SDE at 2.35×, a $361,900 price (round to $362K).
| Line | Amount |
|---|---|
| Purchase price (2.35× $154K SDE) | $362,000 |
| Equity injection (~10%) | $36,200 |
| SBA 7(a) loan (~90%) | $325,800 |
| Est. annual debt service (10 yr, ~11%) | −$53,800 |
| Less: applicator/manager wage reserve | −$55,000 |
| SDE available | $154,000 |
| Cash flow after debt & wage | $45,200 |
| DSCR (SDE ÷ debt service) | ~2.9× |
Even after reserving a full applicator/manager wage and the loan payment, the company still produces positive owner cash flow, and the DSCR clears lender minimums comfortably. Model your own version in the valuation calculator and read how SBA financing works.
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Price, down payment, loan payment, and cash flow after debt, instantly.
Frequently asked questions
About 2.35× SDE for small operators. A company with $175K SDE prices near $411K. With an SBA loan you'd put down ~10% (~$41K) plus closing costs, fleet reserves, and working capital.
SBA 7(a) generally requires ~10% equity. On a $411K company that's ~$41K, and a standby seller note can sometimes count toward part of it.
About 2.35× SDE is the anchor (2.34×, 2.90× band). Pay top-of-range for a high recurring share, low cancellation, and dense routes. Large recurring books get much higher EBITDA multiples from consolidators.
SBA fees, legal and quality-of-earnings diligence, fleet/equipment reserves, and outstanding termite/WDO warranty liability. Confirm warranties transfer with a claims history, and price or indemnify for them.
Sources
- Pest control multiples & benchmarks, BizBuySell Valuation Benchmarks; Peak Business Valuation (2025).
- SBA 7(a) equity injection & DSCR standards, sba.gov 7(a) program; SOP 50 10 8.
