I am looking of someone with roll up experience to help me out with deal structure, valuation, and some insights. Here is our situation:
We have 7 home automation installation companies based in Spain interested in merging to create a company with about 14€ million in sales. Our pitch is that we will allow them to continue working as subsidiaries, and push the business out with a franchising model, along with acquiring more businesses to expand the geography.
1.) How would you value them (each does about[redacted]million EBITDA). Do we give a better valuation to whoever jumps first.
2.) How would you structure the new board, and still give each owner a feeling of decision making power?
3.) Would you structure an earn out early on to let them take chips off the table.
4.) Would you elevate one of the owners to CEO, or hire outside?
5.) What would be your main selling point to any owner who is on the fence?