Personally I think making 5 websites, each for a different product or service is fine, as long as each product or service can be given its own brand and does not overlap services.
But if the product or service already exists on a master site, then I think it is mirroring, no?
And therefore I think if you do it, one day google could eventually figure out that it indeed has a problem with it...
Maybe you could try not indexing the services that overlap so only the new content on the 5 sites gets indexed, and there is no overlap of services.
I also have several sites within the same general industry, but I have no master site. Each site has its own clear brand that pertains to a different niche, and that can appeal to a different audience. The sites are indexed by the search engines with no problem.
The sites are also listed in many directories on the web- with 99.9999999% of editors having no problem with the format since each site sells a separate brand in a different segment of the directory, and the services do not overlap.
Warning though. If you do it this way with 5 niche sites and no master site, you might find that the .0000001% of directories or editors that do have a problem with it, could turn out to be the most powerful and important .0000001% of the directory or editor population. And then that could certainly affect your treatment by Google.