What are the benefits of using a lawyer to sell your pest management business?
A successful business is the result of many years of dedicated hard work. However, if you’re considering selling the business, getting an accurate valuation is the first step in ensuring you get a fair price for the business. But selling a business can be a daunting and complex process. Using an experienced commercial lawyer is one way to feel confident about getting a fair price and remove the stress from the sales process.
The major international pest control companies – Flick, Rentokil and Orkin (Rollins) – actively search the market for potential acquisitions. They, as well as other operators, will always be interested in acquiring the right pest control companies, that fit their acquisition profile, at the right price. To receive an offer for your business is recognition that your hard work has paid off and certainly if you’re looking to sell, accepting the offer may be very tempting. But will it be a fair price?
Nevile & Co is a Melbourne-based boutique law firm that for the last seven years has been actively involved in the successful sale, negotiation, documentation and settlement of a wide range of pest control companies in Australia. They believe this first offer is just the start of the process. Their approach on behalf of their clients is quite simple and effective – to generate competition between potential buyers. This is far more likely to provide a better result. Relying on a direct approach from one of the major international companies is a strategy that is unlikely to achieve the best financial outcome from the sale of the business.
“Competition makes sense to get pest managers the best possible price in the market. Our services include everything up to and including the legal documents and settlement and fees are only payable once we’ve secured a price that is acceptable to the client, which must, of course, be commercially realistic,” said Peter Nevile, partner at Nevile & Co.
When a pest manager decides to engage Nevile & Co to sell their business upon their behalf, the first step is to sign an Authority to Act agreement, which clearly sets out the fees that are payable when the business is sold. The second step is for the lawyer to gain a thorough understanding of the pest business they are representing, in terms of its financials but also its overall value. The third step is for the lawyer to approach potential purchasers, and to enter into negotiations on the pest manager’s behalf. It’s important to note that at no point throughout this process is any client/ customer information disclosed to any potential purchaser.
As with brokers, lawyers will often work on a success fee basis. This means there are no upfront fees, and no fee at all if they do not achieve a price that is acceptable to their client.
Mr Nevile added, “We have generally achieved outstanding results, providing better than expected returns for our pest control clients, who are happy to verify this – we can put pest managers in touch with them so they can independently share their experiences. We are proud of our experience and proven track record and are confident to operate on a no sale-no fee basis for our pest management clients.”
Nevile & Co has been in business for more than 50 years. The law firm has been involved with the sale of one of the largest independently owned pest control companies in Australia as well as companies in Western Australia, Victoria, Canberra, and Queensland. Its lawyers are presently involved in negotiations offshore.
Pest managers who may be interested in selling their business can get in touch with Peter Nevile through the Nevile & Co website for a free, confidential chat.
