Roll-Up Strategy

"A roll-up is simply a growth strategy where a private equity firm, venture capital group or corporate venture fund invests in consolidating two or more companies. The roll-up operator then works to streamline operations, reduce duplicative costs and implement best practices across each business [...].

There are two main goals of a roll-up strategy: customer acquisition and product acquisition.

Companies typically leverage roll-ups for customer acquisition when sales cycles in an existing market are expensive and long. However, most often it’s about expansion into an adjacent vertical or geographical expansion—especially those that involve different languages and cultures.

Product acquisition becomes relevant when in-house development is long and expensive".

Source: https://www.forbes.com/councils/forbesfinancecouncil/2023/11/16/the-power-of-a-roll-up-growth-strategy/