What Is a Good MRR Multiple for a Pest Control Route?

Pest control routes sell for 1.0x to 2.5x annual revenue — but most operators have no idea what puts them at the top of that range. Here's exactly how the math works and what buyers are actually paying for.

If you've spent five minutes researching what your pest control route is worth, you've probably come across the phrase "revenue multiple." It sounds simple enough. Routes sell for some multiple of annual revenue. But that range — 1.0x to 2.5x — is enormous. On a route doing $5,000 a month in revenue, that's the difference between a $60,000 sale and a $150,000 sale.

So what actually determines where your route lands?

The honest answer is that the multiple isn't really about revenue at all. It's about confidence. Buyers pay a premium when they're confident the revenue will still be there after they take over. They discount hard when they're not. Everything that moves your multiple up or down is a proxy for that confidence.

How the Multiple Is Calculated

The standard formula for pest control route valuation starts with Annual Recurring Revenue (ARR) — your monthly recurring revenue multiplied by 12 — and applies a multiplier based on route quality. One-time revenue is typically excluded or valued much lower, because buyers can't count on it continuing.

Example

A route with $4,000/month MRR has $48,000 ARR. At a 1.5x multiple, it sells for $72,000. At a 2.2x multiple, it sells for $105,600. The route is identical — the quality of the revenue determines the price.

That's why buyers obsess over MRR specifically, not total revenue. A route doing $6,000/month total with $4,000 recurring and $2,000 one-time is worth significantly less than a route doing $5,000/month with all of it recurring. Predictable beats high every time.

What Puts You at 2.0x or Higher

Reaching the top of the multiple range requires checking several boxes, not just one. Here's what elite-valued routes have in common:

High average customer tenure

If your average customer has been with you for three or more years, buyers read that as low churn risk. Those customers have already voted with their wallets — repeatedly. Routes with sub-one-year average tenure often indicate a newer business or ongoing churn problems, and buyers price that risk in heavily.

Signed service agreements on the majority of accounts

Written agreements don't guarantee customers stay, but they create a documented relationship that transfers with the sale. Routes where 75% or more of customers are under contract typically command a meaningful premium over routes run on handshake deals.

Geographic density

A tightly clustered route — say, 80 customers in a 10-mile radius — is simply more profitable for a buyer to operate than 80 customers spread across a 50-mile area. Dense routes mean more stops per hour, lower fuel costs, and better per-job margins. Buyers with existing operations will pay more for a route that drops cleanly into their existing territory.

Diversified service mix

Routes that include high-margin services like termite monitoring, mosquito programs, or commercial accounts tend to command higher multiples. A route dependent entirely on one service type — especially seasonal services — carries more risk and gets discounted accordingly.

The Multiple Range in Practice

What Buyers Are Actually Paying For

When a buyer pays a 2.2x multiple for your route, they're not buying your equipment or your truck. They're buying a revenue stream they believe will still be there in 18 months. They're paying for the relationships you've built with customers who have chosen to keep paying you, month after month, for years.

That's why the multiple compresses so hard when churn is high or the owner is the sole technician. A route where 40% of customers only stay because they like you personally isn't worth 2.2x. It might not be worth 1.0x, because a significant chunk of revenue walks out the door with you.

Key Risk Factor

If you are the sole technician on your route, buyers will heavily discount the asking price. Key-person dependency is one of the biggest valuation killers in pest control — and one of the least-discussed. See our post on this topic for how to address it before you sell.

How to Move Your Multiple Up Before You List

The good news is that most of the factors that drive the multiple are within your control — and the changes that matter most can be made in 6–18 months. Getting your agreements signed, tightening your service geography, adding a recurring specialty program, and documenting your customer data in a CRM all move the needle. None of them require you to acquire new customers.

Run the numbers on your current route, then model what happens if you move from 50% agreements to 80%, or from a 1.5-year average tenure to 3 years. The difference in asking price is often larger than operators expect.

Find Out What Your Route Is Worth

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