The short answer: Owner-operators commonly draw $61K, $104K in pay (averaging ~$79K), but total owner benefit, SDE, runs higher once you add back the salary and perks. Well-run companies hold 15%, 25% EBITDA margins, and small routes keep even more because overhead is low. A $700K-revenue company can produce $175K+ of SDE for one owner. That SDE sets the price at roughly 2.35× SDE.
Operator pay vs. owner earnings
Two numbers get confused. The first is what the owner pays themselves, commonly $61,000, $104,000, averaging about $79,000. The second, and the one that matters when you buy, is seller's discretionary earnings (SDE): net profit plus that owner salary and discretionary perks. Because pest control runs 15%, 25% EBITDA margins on low overhead, SDE is meaningfully larger than the operator's draw.
Owner earnings by revenue band
| Annual revenue | SDE @ 20% | SDE @ 28% | Profile |
|---|---|---|---|
| $350,000 | $70,000 | $98,000 | Solo operator, one truck |
| $700,000 | $140,000 | $196,000 | Owner + 2 to 3 techs |
| $1,500,000 | $300,000 | $420,000 | Multi-route, office staff |
| $3,000,000 | $600,000 | $840,000 | Regional operator, manager-run |
The higher end reflects owner add-backs and recurring-route efficiency; the low end reflects a company leaning on one-time jobs or a scattered route. The single biggest driver of both margin and value is the share of revenue that's recurring.
One-time treatments pay the bills. Recurring routes build the wealth, and the multiple.
Building SDE: the add-backs
- Owner's salary, added back, then a replacement wage for a certified applicator/manager considered.
- Owner perks, truck, fuel, phone, a family member on payroll.
- One-time costs, a new spray rig, rebrand, or software migration.
- Interest & depreciation, removed to show operating cash flow; note real fleet capex separately.
Reserve for the certified applicator
If the owner is the certified applicator, you must replace that role. Deduct a market wage for a licensed applicator or qualifying party from SDE, otherwise you're overstating true cash flow.
How earnings become a purchase price
| SDE | Price @ 2.35× | ~10% SBA down |
|---|---|---|
| $100,000 | $235,000 | $23,500 |
| $175,000 | $411,250 | $41,125 |
| $300,000 | $705,000 | $70,500 |
Small companies anchor near 2.35× SDE; large recurring books can command EBITDA multiples several times higher from consolidators, a signal for your eventual exit. Run your numbers in the valuation calculator and check comps on the pest control multiples page.
See what that SDE is worth
Plug in earnings and a multiple to get a price and down payment.
Frequently asked questions
Operators commonly draw $61K, $104K (avg ~$79K), but total owner benefit (SDE) is higher. A $700K-revenue company at a 20% margin plus owner add-backs can produce $175K+ of SDE for one owner-operator.
Well-run companies run 15%, 25% EBITDA, and small owner-operator routes keep even more because overhead is low. Recurring quarterly/monthly plans protect margin far better than one-time treatments.
Yes, some of the best owner economics in services, driven by recurring routes, low overhead, and steady demand. That recurring base also makes the business attractive to PE buyers at exit.
Price is SDE × about 2.35× for small operators. $175,000 of SDE is worth roughly $411,000. A higher recurring share and low cancellation raise the multiple; large recurring books attract much higher EBITDA multiples.
Sources
- Owner pay & profitability, FieldRoutes (2025).
- Margins & multiples, BizBuySell Valuation Benchmarks; Peak Business Valuation.
