Pest control route business, 82% recurring, documented 91% annual renewal rate
§ 01 · Observed
What was documented in diligence.
Customer management software export reconciled against billing records for 24 months. Annual renewal rate 91% on quarterly and annual service agreements. Monthly attrition 1.8% — within the efficient 1%–3% benchmark. Pesticide applicator license: state-qualifying individual is a W-2 employee with 6-year tenure; license transferable to new entity under state rules without re-examination. Owner performs zero route stops; no replacement-labor normalization required. One-time and seasonal treatments separated — 18% of revenue, excluded from recurring SDE base.
§ 02 · Outcome
What happened.
Signed at 5.1× SDE. Lender DSCR 1.29×. Closed without repricing.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Upper-band placement driven by renewal rate documentation, license continuity independent of owner, and proper revenue separation. The absence of owner-technician labor normalization removed the most common SDE compression trigger in this vertical.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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