# Roll-Up Strategy

*Corporate Finance & M&A — Finicade finance glossary*

A roll-up acquires many small companies in a fragmented industry and combines them into one larger business. The financial engine is multiple arbitrage: buying at 5× earnings and being valued at 10× as a larger entity creates value on the spreadsheet before any operational improvement. It works when integration is real and fails loudly when the group is a collection of businesses that never actually merged.

**Also known as:** roll up, buy and build, platform acquisition

**Related terms:** [Bolt-On Acquisition](https://finicade.com/glossary/bolt-on-acquisition), [Private Equity](https://finicade.com/glossary/private-equity), [Valuation Multiple](https://finicade.com/glossary/valuation-multiple), [Economies of Scale](https://finicade.com/glossary/economies-of-scale), [Post-Merger Integration](https://finicade.com/glossary/post-merger-integration)

Source: https://finicade.com/glossary/roll-up-strategy