Roll-Up Sponsor Plan

Notre Capital vs. us · Comfort Systems · Bending Spoons · the Acquisitions.com model · draft 20 Oct 2026
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The short answer

Yes, Comfort Systems can be copied, but not with small companies alone, and not with $300k. Comfort is now worth $51B. It started in 1997 as 12 HVAC firms with $168M of sales, listed on day one.

How Notre did it vs. how we plan to

PieceNotre / Comfort Systems (1997)Our planGap?
SponsorNotre Capital Ventures II, Houston. Steven Harter, 34, ex-Allwaste deal guy and Arthur Andersen CPA. Already did 2 roll-up IPOs.Moran / Acquisitions.com. No roll-up IPO done yet.Add a chairman who has taken a company public
Sponsor's stakePaid $29,699 (1¢ a share) → 14.8% after IPO, worth $38.6M on day one. With managers: about 21%.Sponsor company with 10–15% of each roll-up.Same
Sponsor feeNo fee. Paid only in shares.Shares in each roll-up + AI OS paid at market price.OK if disclosed
Deal-flow partnerThe CEO himself. Ferreira knew the HVAC owners and brought the idea.Jon (dealers), marketing agencies, advisors.Partner finds deals; we still need an operator CEO
CEOFred Ferreira, 54, ex-COO of Allwaste. Paid $4,794 for 479,435 shares (2.4%) + 200,000 options. Salary $150k.Not found yet.Biggest gap
CFOGordon Beittenmiller, 38, ex-controller of Keystone, ex-Arthur Andersen. 116,000 shares (0.6%).Not found yet.Need one with public reporting
Seed moneyNotre lent about $1.13M interest-free for costs, repaid from the IPO. (About $2.3M in today's dollars, approximate.)Angel / seed investor $200–300k.Too small: budget $1.5–3M
BankerAlex. Brown (lead), Bear Stearns, DLJ, Sanders Morris Mundy. Top-tier banks. 7% fee.ThinkEquity.Small-cap bank. Its one auto IPO (LMP, $11.5M) failed
IPO size$13 a share, $79.3M (+$11.9M extra shares). NYSE.Not set.Today: at least $15M new money on Nasdaq; aim $50M+
The founding companies
How many companies12 HVAC firms in 9 states, all closed on IPO day5–8 per sector (dealers: groups of 3–10 stores)Fewer, so each must be bigger
Sales per companyAverage $14.0M (range $3.7M–$30M). Group $167.5MTarget $5–30M; 2 anchors at $20M+Same range
Profit per companyAverage pre-tax $1.1M as reported; about $1.7M after the owner's pay cut ($20M group). EBITDA not given in the filingAdjusted EBITDA after a market salary for the ownerSame method
Multiple paidAbout 8.6× adjusted pre-tax profit (group average). Price fixed per founder, not one menu3× / 4× / 5× adjusted EBITDA, one menu for allWe pay less
Price per companyAverage $14.3M (range $4.7M–$38.8M), at the $13 IPO priceDepends on profit: e.g. $2M EBITDA × 4× = $8M
Cash up frontAverage $3.8M per company (range $0.7M–$10.1M) = 15–30% of price, 26% overall ($45.3M). Paid on IPO day from IPO money. Owners also took out $16.8M of old profits before closing10–30% at closing, from debtSame share; ours is debt-funded
Shares74% of the price in shares, valued at the IPO price70–90% in sharesSame
The operating deal with each owner
JobOwner stays president of his own company, same name and team. 5-year employment contract, then year to yearSame, 5-year contractSame
SalaryCut to a market salary: founders such as Nothum and Powers got $150,000. Never below $100,000 or 90% of last year's. Total owner pay fell from $9.0M to $2.4M a year (≈$750k → $200k per company); the saving was counted as profit in the priceMarket salary for a president, about $150–250k + bonus, written in the offerSame idea
If firedWithout cause in years 1–3: the rest of 3 years' salary (at least 1 year). Years 4–5: 1 yearTo decide with the lawyerCopy it
Earn-outNoneNone in the menuSame
Escrow / holdbackNone. Promises last 12 months, claims only above 1% of price (min $50k), capped at what he receivedNone, same claim limitsSame
Lock-up1 year on all shares. Later 10 founders chose to lock part until 1999–200112 monthsSame
Non-compete5 years, 100 miles (plus 2 years after leaving the job)5 yearsSame
Board9 of 12 owners became directorsBoard seat for the larger foundersSame
CostsGroup paid all costs, deal or no deal, plus up to $150k of owners' legal feesWe pay the review of their numbers and all deal costsSame
ClosingCloses only together with the IPO. Dies if money doesn't move in 15 business days, or by 30 Sep 1997. IPO price floor $8. No break feeCloses only with the IPO, or unwindsSame
The money
Bank line$75M unsecured Bank One line on day one.Not set.Need a lender term sheet
TimeCompany formed 12 Dec 1996 → IPO 2 Jul 1997: under 7 months.12–15 months.Realistic
What every Comfort founder got, in one line: about 26% cash + 74% shares on IPO day · no escrow · no earn-out · 5-year contract as president at a market salary ($150k for the founders named) · 5-year, 100-mile non-compete · 1-year lock-up on shares · the group paid all costs, deal or no deal · closing only together with the IPO.

Sources: Comfort Systems IPO prospectus (424B4, June 1997, SEC accession 0000890566-97-001455), sections "Management", "Certain Transactions", "Underwriting".

The 12 Comfort Systems founding companies

1996 figures, $ millions. "Value" uses the $13 IPO price. Half the founders had under $10M of sales.

Company, citySalesPre-tax profitStaffCash paidSharesTotal valueOwner
Atlas, Houston30.01.872546.861,432,00025.5Brian & Michael Atlas
Quality Air, Grand Rapids29.64.4321610.082,207,15838.8Robert Powers + 3
Tri-City, Tempe AZ24.22.012388.681,557,96228.9Nothum family
S.M. Lawrence, Jackson TN17.20.121684.501,197,79620.1Lawrence family
Accurate Air, Houston16.80.431233.15564,53710.5Thomas Beaty
Freeway, Bountiful UT9.4n/d1131.04319,6985.2Arbuckle family
Eastern, Albany NY7.90.38580.70304,2164.7Alfred Giardenelli Jr.
CSI/Bonneville, Salt Lake City7.81.00811.81493,6728.2John Phillips, James Mahler
Tech, Solon OH7.51.69564.00717,40813.3Robert Cook
Seasonair, Rockville MD6.70.20651.52272,0845.12 family trusts + staff share plan
Western, Denver6.50.67522.02362,9396.7Charles Klapperich + 4
Standard, Birmingham AL3.7n/d370.95291,4574.7Thomas & Christine Kime
Total167.513.41,46145.39,720,927171.7

The deal terms every founder signed

All 12 signed the same "Agreement and Plan of Organization" on 18 Mar 1997. Simply:

TermWhat it said
StructureThe owner's company merges into a new subsidiary. It keeps its name and people.
PriceFixed cash + fixed shares per founder, based on profit after the owner's pay cut.
Price floorDeal holds only if the IPO price is at least $8 a share.
Escrow / earn-outNone. Everything paid at closing.
Owner's promisesLast 12 months. Claims only above 1% of price (min $50k), capped at what he got.
No-shopNo talks with other buyers from signing to closing.
Non-compete5 years, 100 miles.
Job5-year employment contract as president of his company. Salary at least $100k.
Lock-upOwners: 1 year. Notre and managers: 180 days (plus 1 year by side letter).
BuildingsOwner keeps the building and leases it to the group at market rent.
Bank guaranteesGroup releases the owner's personal guarantees, or repays the debt in 120 days.
CostsGroup pays all costs, deal or no deal, plus up to $150k of the owners' legal fees.
If the IPO failsDeal dies if money doesn't move in 15 business days, or by 30 Sep 1997. No break fee.
TaxShares part tax-free (Section 351). Owner pays tax on the cash.

Full texts are under Documents.

Who gets what: your table vs. what Comfort actually did

Your recommended seats line up with Comfort's CEO stake. Comfort gave less to the CFO and directors, and more to the staff option pool.

SeatYour 2024 noteOur recommendationComfort Systems 1997 (% of listed company)Pay
Operator-CEO (one per roll-up)2% max3–5%: half over 4 years, half on goals; puts in some own moneyFerreira: 2.4% in shares (paid $4,794) + 200,000 options ≈ 3.4%$0–10k/month before close, then $200–300k + bonus (Comfort: $150k in 1997)
CFO2% max1–2%Beittenmiller: 0.6% (116,000 shares)Part-time first; full-time 5–8 months before listing (Comfort: $150k)
Chairman0.25%0.5–1.5%, someone who has taken a company publicCEO was also chairmanNo cash before, then board fees
2 independent directors—0.25–0.5% each3 outsiders (incl. Harter for Notre): 10,000 options each (≈0.05%)Board fees (Comfort: $2,000 a meeting)
Lawyer2% (5% in 2022)Fees, not equityFees—
Staff option pool—5–8%Up to 13% of shares; ≈9.7% granted at IPO (675k to managers, 1.27M to founders' staff), vest 20% a year—
Sponsor—10–15%Notre 14.8%No fee

Comfort percentages are of about 20M shares after the IPO (Notre's 2.97M = 14.8%). Source: 424B4 "Management", "Principal Stockholders".

How Comfort ran day to day

Lesson: the model works when the owners run their companies and head office stays small. It breaks when the group buys faster than it can absorb. Slow growth with good units made it a giant.

Bending Spoons: how they buy and run companies

Listed on Nasdaq (BSP) 1 Jul 2026 at $29, raising $1.68B (about $18.4B value). Berkshire Hathaway put in $600M at the IPO and $330M more at $33 on 14 Oct 2026. Source: the final prospectus (424B4) and 6-K filings.

What they pay per deal (all cash)

CompanyClosedPriceSales at purchase× sales
EvernoteJan 2023$200M$95M~2.1×
Meetup, StreamYard, Issuu2024$281M——
WeTransferJul 2024$476M~$146M (est.)~3.3×
BrightcoveFeb 2025$218M$163M~1.2×
Loomly, komoot, MileIQ, Harvest2025$701M——
VimeoNov 2025$1.36B$417M~3.3×
AOLJan 2026$1.45B$633M~2.3×
EventbriteMar 2026$505M$292M~1.7×
TractiveMay 2026$900M——
AirtableSep 2026$1.29BARR ~$480M2.7×
Miro (signed)Sep 2026$1.36BARR ~$600M2.3×

How they pay

Day-to-day: yes, they fire most people

What they doTheir numbers
Cut staff hardEvernote 341 → 60 (−82%). StreamYard 154 → 44 (−71%). Of 1,830 people from AOL, Eventbrite and Vimeo, "only a few hundred" stay.
Replace them withCentral teams + one shared tech stack (data, payments, testing, hiring) + AI. 90%+ of code changes written or co-written by AI.
First yearA task force of dozens of their own people, one-to-one talks with every acquired employee, then one plan. Done within year 1.
LayersMax 3 management layers. Evernote went from 4 to 2.
Testing3,000+ experiments in 2025.
PricingOne-off sales → subscriptions; limits on free plans; charge businesses using personal plans.
Staff payIn 2025, 84% of eligible staff swapped about 28% of salary for discounted options. Options vest over time.
Hiring800,000 applications in 2025, ~60,000 practical tests, 286 hires. Graduates on purpose.

Their values (from the prospectus)

ValueWhat it means
Truth-seekingDecide on facts and tests, not opinions
Extreme ownershipYou own the result, no excuses
Relentless simplificationFewer products, people, layers, steps
Selfless team-playThe group beats the person
Radical candorSay the hard thing, kindly and directly
Uncompromising excellenceThey let go of "adequate" performers
Equity acquired, not grantedStaff buy ownership with salary; ownership at group level
Talent over experience; returns over growthFrom the founders' letter

Risks they admit

Past employment claims after reorganisations; customer backlash after changing a product's terms (fits the WeTransfer AI-clause row, July 2025); price rises can hurt brands; Vimeo copyright suits in Italy. Organic growth only 3% (Q2 2026): almost all growth is bought.

Copy: written return bar, one fair offer, one shared platform in 100 days, central back office, testing across all companies at once, subscriptions, max 3 layers, salary-for-shares choice. Don't copy: 70–80% layoffs (in a service business the crews are the product), 100% cash, their debt scale, hard price rises, EBITDA that counts savings not yet made.

The Acquisitions.com model: capital + AI for small businesses

Your vision works if Acquisitions.com is the sponsor and AI platform of many sector roll-ups, not a fee collector. Notre took no fee and got rich on shares.

Acquisitions.com (sponsor + AI OS)Finds the CEO, raises the money, runs the deal process, owns the AI OS and the playbook. Earns 10–15% of each roll-up in shares + AI OS subscriptions at market price.
sponsors ↓    deal flow ↑
Dealer roll-upCEO + CFO · 5–8 dealer groups · partner: Jon / CarDealer.ai
Marketing-agency roll-upCEO + CFO · 8–12 agencies · partners: agency owners
Trades roll-up (HVAC, roofing…)CEO + CFO · 10–12 firms · partners: advisors, coaches
each owner stays president ↓
Founding companiesKeep name, team, customers. Run on the AI OS within 100 days.
Partners (agencies, advisors)Bring deals and install the AI. Paid in sponsor shares of that roll-up, never per-deal fees.
QuestionAnswer
Can Acquisitions.com charge management fees?Careful. Public investors pay less for companies that send fees to an outside manager. And managing many pools for fees can make you an investment adviser. Safer: shares + AI OS priced at market, disclosed. Lawyer to confirm.
One public company or many?Start with one sector, list it, prove it. Then the next sector. (Joel's "one kibbutz" warning: one strong company beats ten weak ones.)
Where does the AI story help?Carvana trades at 32× earnings, car dealers at 6–10×. Report AI OS revenue as its own line so investors see it.
Who installs the AI?Partner agencies and advisors, paid by the group, on one playbook. The founder's team stays (unlike Bending Spoons).

Is it doable with small businesses?

Business size (sales)RoleWhy
$20M+Anchor founderComfort had 2 at $30M. Banks need anchors.
$5–20MFounderMost of Comfort's 12 were here.
$2–5MFounder only if very profitable, or bolt-onComfort's smallest was $3.7M.
Under $2MBolt-on after listingToo small to audit and list; buy them later with cash and shares, into a nearby unit.

Group size to list today: aim for $150M+ sales and $15–25M adjusted profit at IPO, and raise $50M+ (Nasdaq minimum is $15M of new money). Smaller than that: do a private close first (lender + seller notes + shares) and list later.

The plan

  1. Pick one sector to start. Dealers (Jon) or marketing agencies. Both have a partner already.
  2. Find the sector CEO first. An operator who knows the owners, like Ferreira. Offer 3–5% (half over 4 years, half on goals).
  3. Add a chairman who has taken a company public. 0.5–1.5%.
  4. Raise $1.5–3M seed, not $300k: audits for 8–12 companies, lawyers, the filing. Repaid at the IPO, like Notre's $1.13M loan.
  5. Sign 2 anchors ($20M+ sales), then 6–10 more at one price menu.
  6. Banker: ask ThinkEquity what size they can take, and also talk to one mid-size bank. A $15M IPO is too small for a group.
  7. One agreement for all, copied from Comfort's: same price menu, 5-year contracts, 1-year lock-up, no escrow, closes only with the IPO.
  8. Day one: AI OS in every company within 100 days. Head office under 10 people. No layoffs of crews.
  9. Grow slowly. A written limit on deals per year and on debt. Comfort nearly died buying 107 companies in 2 years.

Documents you can read

Comfort Systems 1997 (from SEC EDGAR)

Bending Spoons 2026