Consolidation Phase

AAA

DEFINITION of 'Consolidation Phase'

A stage in the life of a company or an industry in which components in the company or industry start to merge to form fewer components. These components can include product lines at the company level or companies themselves at the industry level. The consolidation of companies differs from mergers in that consolidations create new entities while mergers do not.

INVESTOPEDIA EXPLAINS 'Consolidation Phase'

Let's say the video game industry is starting to mature, and its companies start to acquire other companies and join together to form larger entities; this would be an example of a consolidation phase for the industry.

RELATED TERMS
  1. Merger

    The combining of two or more companies, generally by offering ...
  2. Sunrise Industry

    A colloquial term for a sector or business that is in its infancy, ...
  3. Growth Industry

    A sector of the economy experiencing a higher-than-average growth ...
  4. Emerging Industry

    A group of companies in a line of business formed around a new ...
  5. Mature Industry

    An industry which has passed both the emerging and the growth ...
  6. Industry

    A classification that refers to a group of companies that are ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Is Growth Always A Good Thing?
    Markets

    Is Growth Always A Good Thing?

  3. Great Company Or Growing Industry?
    Markets

    Great Company Or Growing Industry?

  4. Peak-and-Trough Analysis
    Active Trading

    Peak-and-Trough Analysis

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center