Rollup

In financial terms, a "rollup" refers to a process where smaller companies are merged into larger entities, often within the same industry or sector. This strategy is typically employed by a larger company or a private equity firm that aims to consolidate market share, reduce competition, or achieve economies of scale.

The rollup involves acquiring multiple smaller businesses, integrating them, and streamlining operations to increase efficiency and profitability. This can lead to enhanced bargaining power with suppliers, a broader customer base, and the ability to cross-sell products or services across the newly combined entity.

In the context of annuities, a rollup can refer to a feature in certain deferred annuity contracts that guarantees a minimum growth rate on the income base of the contract.