Roll-up

An acquisition strategy that compounds value by buying multiple businesses in the same or adjacent sectors, operating them under shared capital and management. Concentrated conglomerates like Constellation Software (vertical software), Thrasio (FBA businesses), and Tiny (internet companies) represent the modern form. International conglomerates (Korean chaebols, Indian business houses) tend to outperform U.S. peers because they grant subsidiaries autonomy — running them as distinct legal entities with separate boards and the ability to raise money independently. Most acquiring companies historically fail to increase profits or efficiency; the exceptions share long time horizons and decentralized structures. See M&A and Holding Company.

Where this appears

• M&A-focused Strategies Are All the… (tweet)