Anyone experienced with "up-side" only rollup's?
I recently watched a podcast with a plumber explaining that he joined a coalition group with 10 other businesses, to continue operating independently under their original name while combining 2-3 systems (payroll, HR, annual masterminds together)- and then all sell together in the end for a higher multiple.
He mentioned the individual heading this " up side only synthetic roll up" valued their business at a specific multiple on EBITDA, and then whatever they get above that multiple they split. All done without acquiring with cash.
I currently own a pest control company that does $4.4M in annual recurring subscriptions, and have gotten one other small pest control owner to join this concept. Is this a real roll up option? Has anyone done this or can point me in the right direction? Would love to hear thoughts or experiences in this.