Roll up multiples?

November 24, 2025

by a searcher from Universitat Pompeu Fabra in Manila, Metro Manila, Philippines

Hello, I am working on a consumer roll-up that can reach $10M in EBITDA over the next 24 months. We are currently at $30M revenue, breakeven after management salaries. Looking for feedback on how to structure it. Current LP holds the $30M in businesses; it currently has low EBITDA but after the subsequent acquisition, we would be looking at $2M to $3M extra, which values it at $10M-$15M We are looking at some bigger acquisitions in the $2M to $5M EBITDA range at the moment. We do not want to pay more than 5x. Do we acquire the next business as an independent sponsor and, after 12 months, roll in our current LP at a fair valuation, or do we raise equity for the next acquisition into the current LP? Once we get closer to $10M EBITDA we could start buying at 5-6x as the only strategic in the space and looking to trade at 8x on our way to $50M EBITDA. Thanks,

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

1) Agree with ^redacted‌ that you should acquire into existing platform. It can be a separate entity as long as equity stack is same. 2) I have seen few roll-ups. Based on brief description above ($30 M and breakeven), I wonder if rollup would create negative value. May be the industry is ultra-low margin.

Reply by a searcher
from University of Central Missouri in Baltimore, MD, USA

If you're buying a business in a similar category as your current business, you should likely acquire it into the existing business platform. Your current investors won't be happy if you buy another business separately and try to merge it in. Also, at $30M of revenue and breakeven, you need the synergies and operating leverage of operating the businesses under one roof.

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