Roll-Up (Merger)

A roll-up merger is a business strategy where multiple smaller companies in the same industry are acquired and merged into a larger company. The goal of a roll-up is to achieve economies of scale, improve market share, and streamline operations by combining the resources and expertise of the acquired firms. Roll-ups are common in fragmented industries, where many small players operate independently, and consolidation can lead to cost savings, increased efficiency, and greater market power.

Example

A private equity firm executes a roll-up strategy by acquiring multiple local HVAC companies and merging them into a single, larger entity to improve operational efficiency and market presence.