With a sluggish U.S. economic climate, the best bet for companies to achieve growth is consolidation, the "Fast Money" traders said Tuesday.

Tim Seymour of Triogem Asset Management said that AMC Networks is one name to watch.

"Everyone is paying, paying, paying for content," he said, adding that its cash-flow yield make it an attractive takeover target.

Twitter would make a perfect takeover target, RiskReversal.com's Dan Nathan said.

"This company should be bought by Google," he said. "That will assure them a footprint in the real-time search for the next 10 years."

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The Children's Place would be a great takeover due to a pullback in the credit markets over the past few weeks, Karen Finerman of Metropolitan Capital Advisors said.

Finerman owns PLCE shares but said that's not why she thought it would make a solid acquisition.

"I don't see an LBO in the short term at all," she said. "I just like it for fundamental."

Control4 makes a perfect takeover target, Brian Kelly of Brian Kelly Capital said, noting Google's purchase of thermostat maker Nest.

"They bought it because it's a portal into the home," he said. "So, who else out there needs a portal into the home? Well, certainly, Apple has a ton of cash that they need to spend. I wouldn't be surprised to see them take this one out."

Kelly is long Control4 via options.

Credit markets, he added, have fueled the merger-and-acquisition boom. Yet outflows from high-yield have increased over the past few weeks, imperiling future consolidation.

"If you start to see this area blow up, I think this is the biggest risk to the M&A and the biggest risk to the market at this point," he said.

—By CNBC's Landon Dowdy