Final answer:
Industry rollups are successful due to resource sharing and the maintenance of local connections with the additional benefit of economies of scale, while front-office skills remain a crucial option (5).
Step-by-step explanation:
Industry rollups succeed for multiple reasons, among which the most significant are that 1) once-independent competitive units can share resources, and 2) small operations retain their local connections and personal touch while achieving economies of scale.
The ability to share resources allows for a reduction in competition and potential cost savings. Meanwhile, retaining local connections ensures that customer relationships and local market expertise are preserved, which are both critical components for success.
However, it is incorrect to assert that rolled-up firms no longer require expertise in front-office skills; expertise in managing customer relationships and other front-office tasks remains vital. Therefore, the correct answer is that industry rollups succeed because of 'Only 1 and 2'.