A private-equity approach that buys multiple businesses in one industry, combines them, and aims for a larger exit, often over about five years.
A roll-up strategy is a private-equity play to buy several companies in one fragmented industry, integrate them, and sell the combined platform at a higher multiple. The hold period is often about five years.
Sellers in these deals usually receive a mix of cash, an earnout, and rollover equity in the platform. The rollover is the second bite: if the roll-up works, the minority stake can be worth more than the first check. If integration fails or credit markets close, the stake stays illiquid through the lockup.
Talk to other sellers who already sold into the same platform. Check the buyer's integration record, capital, and culture. A roll-up is a bet on the acquirer's execution, not only on the seller's own company.