From Broker to Owner of Top Termite Co with Matt Railla

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From Broker to Owner of Top Termite Co with Matt Railla

Matt broke the cardinal rule of business brokering: he bought his own listing. Today, he's the owner-operator Top Termite Co, providing residential termite inspections to Los Angeles home buyers.

William Fry

May 07, 2025

Transcript

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After working on the family business with his father, Matt Railla joined Transworld business brokerage in Los Angeles. But he didn’t stay there for long. In 2024, he bought one of his own listings: Top Termite Co. He’s now the owner-operator of a trusted termite inspection business in California, doing over 1,500 inspections a year. In this interview, we discuss how Matt Railla transitioned from brokering to operating, the ins and outs of a termite inspection business, and what makes a great inspector.

Some takeaways:

90% of business comes from real estate transactions. The primary channel is the buyer’s agent, not the homeowner — making agent relationships the #1 sales driver. Many prospective buyers viewed this as a risk vs. a benefit.
Majority of revenue is from subcontracted services. A standard inspection costs ~$200. But detecting termite damage can lead to big downstream jobs — from a $2,500 fumigation to six-figure structural wood repair.
Fumigation can't be sold directly — inspectors are the gatekeepers. In California, fumigation companies can’t sell direct-to-consumer. Homeowners must go through a licensed inspector first, which creates a built-in sales channel for businesses like Matt’s.
Getting licensed doesn’t require four years — but being independent does. Matt quickly earned a field rep license to perform inspections while under contract to acquire the business. But operating a pest control business independently requires an operator’s license — a four-year path — so he structured his acquisition with the seller staying on as the license holder.
Success comes down to relationship management. From sending holiday gifts to buyer’s agents to managing the subcontractors, Matt stays busy nurturing their relationships with channel partners and vendors.
Great inspectors crawl through attics and spiderwebs — lazy ones don’t.
Matt has a “try before you buy” approach to hiring inspectors. He’ll have them come out to job sites and watch them perform a few inspections before deciding whether or not to bring them onto the team.