Fee Structure and EV/EBITDA Multiples
Was curious if anyone can answer these questions for me - trying to see if there are any concepts I might be missing with it. Essentially, want to understand how multiples (I guess just EV/EBITDA) would be by different fee structures. I can't imagine that one fee-structure would necessitate a higher multiple than another as a rule - like all else being equal I can't justify that a subscription model would beat an upfront payment model or a contingent model (well maybe a contingent one since there are more inherent risks in the chain). What seems like a logical counter to that would be a franchise model versus a company owned model, which I would imagine would have a higher multiple because there is less capital at risk from the company with the upside potential still there - so is there a clear fee type hierarchy?
Seems unclear if there is a one size fits all type answer, but wanted to see if anyone else has any insights
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Anyone?
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