{
  "title": "What is a roll-up? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-a-roll-up/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-24",
  "updated": "2026-10-24",
  "section": "Glossary",
  "keyword": "Roll-up",
  "short_answer": "A roll-up is a strategy of buying several small companies in the same industry and combining them into one larger business. The combined company is usually worth more per dollar of profit than the pieces were, because larger businesses trade at higher multiples and share costs.",
  "facts": {
    "Company A (platform)": [
      "$600,000",
      "4.0x",
      "$2,400,000"
    ],
    "Company B (add-on)": [
      "$400,000",
      "4.0x",
      "$1,600,000"
    ],
    "Company C (add-on)": [
      "$500,000",
      "4.0x",
      "$2,000,000"
    ],
    "Total bought": [
      "$1,500,000",
      "4.0x",
      "$6,000,000"
    ],
    "Combined group at exit": [
      "$1,500,000",
      "7.0x",
      "$10,500,000"
    ],
    "Value created before costs": [
      "",
      "",
      "$4,500,000"
    ]
  },
  "sources": [
    "https://www.investopedia.com/terms/m/mergersandacquisitions.asp",
    "https://www.sec.gov/resources-small-businesses/exempt-offerings/private-placements-rule-506b",
    "https://www.investor.gov/introduction-investing/investing-basics/glossary/private-placements"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}