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Archive for November, 2007

Losing $75K in 7 Seconds: Purchase Price Allocation 101

Monday, November 19th, 2007

Last month our business valuation department was engaged by a pest control client, Kevin, owner of XYZ Pest Control, to advise him on setting up a stock gifting program. His goals are to gift stock annually to his children over the next 10 years or so, taking advantage of the Federal Annual Gift Tax exemption as a vehicle for saving for their college education. When we reviewed the financial and operational documents on XYZ, we realized that Kevin had made a few acquisitions over the last few years. XYZ’s most recent was the acquisition of a competitor - the purchase of the assets of an S corporation for $1,050,000. Upon digging into the numbers a little deeper, we realized something quite peculiarly, though not particularly surprising. The buyer and seller had allocated a very large portion of the purchase price, $480,000 to be exact, to a non-competition agreement. In this article, you are going to learn why this alarmed us and what you can do to avoid tax mistakes while doing deals.

The Texas Pest Control Association Announced 2008 Election Results

Monday, November 19th, 2007

President will be Mitch Wassom of Collin Services, Plano, Texas.

President Elect will be Van Wilson of J Bar V Greenlawn, Lubbock,
Texas. (more…)

Killing You Softly, Part 1 – Your Pricing

Thursday, November 15th, 2007

While low pricing may make you very competitive in your local market today, it’s going to clobber you when it comes time to sell your business.

Customer pricing is a very important consideration in the acquisition of a pest control company, and very little is said about it until it’s way too late to do anything. Are you a PCO who is focused on growing sales at all cost? Better listen up now, or start saving a bigger chunk of your paycheck for retirement… you’ll need it. (more…)

Pest Control Industry Continues to Grow in 2007

Wednesday, November 14th, 2007

According to an October 2007 study performed on behalf of the National Pest Management Association (NPMA), the pest control industry has continued to grow at six percent over the last three years and added about 6.5 million new professional pest control customers. (more…)

ISS Expanding Into Pest Control in Mexico

Sunday, November 11th, 2007

Copenhagen, 11 November 2007 – ISS is expanding its operations in Mexico with the acquisition of the pest control business Martex S.A. de C.V. (more…)

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