Client Question: Is consolidation through acquisition an opportunity in the widget industry?
The client was in the widget industry in the western US. Webster Pacific’s research showed that because of transportation costs and raw material availability, the market for widgets was split into the western and eastern US.
Companies in the eastern US were split into two distinct groups: leaders and followers. |
Companies in the western US, however, were all of similar smaller size, with no clear leader. This market presented an opportunity. |
Answer: The western US presented a unique opportunity for one company to become an industry leader through acquisition.