Glossary · Deal process
Roll-up
Also called roll-up strategy, buy-and-build
Definition
A roll-up (or buy-and-build) strategy buys a series of smaller businesses in a fragmented sector and combines them. The bet is that the larger group is worth more per pound of earnings than the parts. Each acquisition needs its own diligence, so buyers run many small processes in a row.
Where roll-up comes up
On this site, in our guides and in the conversations we've written up.
Related terms
Bolt-on acquisition A smaller company bought to add to an existing platform business, common in private equity. Leveraged buyout An acquisition paid for largely with borrowed money, secured on the target company itself. Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Carve-out The sale of a division or business unit that has to be separated from its parent company. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships. Distressed M&A Buying or selling a business in financial trouble, often under time pressure or in insolvency.