THE FUTURE OF ROLL-UPS: BUSINESS INNOVATION, ETHICS, AND SUSTAINABLE GROWTH IN FRAGMENTED INDUSTRIES

Abstract

This article explores the ethical and sustainability-related risks and opportunities associated with the roll-up business model: a model where private investors acquire small firms in fragmented markets, consolidate operations, and leverage technology and capital market access to rapidly scale. Roll-ups have been associated with efficiency, cost savings, and shareholder value creation; but there is less research on their wider societal impacts related to ethics, community, and sustainability. We review cross-industry and cross-country cases, including in craft breweries (US/Europe), funeral services (North America), edtech (India), and waste management (Latin America) to analyze both opportunities and risks. Roll-ups can enable resource and capital efficiency, bring professionalization to fragmented markets, and accelerate digital adoption, but also present challenges related to equity, labor practices, and consumer welfare. The article presents a “responsible consolidation” framework with a focus on ethical leadership, transparent reporting, and alignment with the UN Sustainable Development Goals (SDGs).