WikiWealth

Consolidating markets create many acquisition targets, especially when consolidation leads to economies of scale. The acquisition target can quickly approach their fair value plus a premium. Quick potential returns will accrue to small, but successful, companies in consolidating industries. … "Consolidating Industry" has a significant impact, so an analyst should put more weight into it. This statements will have a short-term positive impact on this entity, which adds to its value. This statement will lead to an increase in profits for this entity.