ROLLUP PLATFORM
Unit economics

One contractor, before and after

The whole model is this single company repeated. The contractor's joining-date EBITDA is frozen as their floor; everything created above it is shared. Nothing here re-bases the baseline as a percentage of future revenue.

At joining — month 0
$5M
annual revenue
Normalized EBITDA$400K
EBITDA margin8.0%
Frozen baseline set at$400K
Incremental EBITDA$0
JV participation$0

Strong reputation and demand, but owner-dependent: thin management layer, weak systems, excess overhead, unmeasured technician productivity.

24 months
At maturity — month 24
$7.5M
annual revenue
EBITDA$1.5M
EBITDA margin20.0%
Frozen baseline (unchanged)$400K
Incremental EBITDA$1.1M
JV participation (50% of uplift)$550K
Total contractor economics$950K

Centralized demand generation, dispatch discipline, pricing, technician productivity and overhead leverage — delivered by the platform and charged at 8.0% of revenue ($600K).

Maturation curve — drag to any point in time

Quarter 8 of 8 after joining
Revenue
$7.5M
100% through maturation
EBITDA
$1.5M
Margin 20.0%
Incremental EBITDA
$1.1M
Above frozen baseline of $400K
JV share
$550K
Contractor keeps $950K

The formula, exactly as modeled

  1. Frozen Baseline = normalized EBITDA at joining = $400K
  2. Incremental = max(Current EBITDA − Frozen Baseline, 0) = $1.1M
  3. JV Participation = 50% × Incremental = $550K
  4. Contractor = Frozen Baseline + 50% × Incremental = $950K
  5. Platform Fee = 8.0% × Revenue = $600K

Target profile (ICP)

Assumption, not agreed term
TradesHVAC · Plumbing · Electrical
Core revenue range$3M – $15M
Initial model company$5M / $400K
Entry margin8.0%
  • Strong underlying business, brand and customer reputation
  • Owner-dependent and under-managed
  • Weak systems: dispatch, CRM discipline, pricing, reporting
  • Excess overhead or unmanaged cost structure
  • Clear, identifiable EBITDA improvement opportunity