- Initially fragile memories can gain stability via consolidation, but the extent to which sleep contributes to this process is unresolved …
- —John D. Rudoy et al.
Examples of consolidation in a Sentence
the consolidation of several intelligence agencies into one super agency
Recent Examples of consolidation from the Web
Get our daily newsletter Further media consolidation would then unfold as big competitors pursue similar vertical mergers of content and distribution businesses.
Today, the growth and consolidation of multinational corporations presents American democracy with genuine policy challenges.
The takeover bid comes amid a wave of industry consolidation, increasing packaging prices amid a global economic growth, and a rise in e-commerce, which is boosting demand for cardboard packaging.
The consolidation, announced Wednesday, will bring together two nonprofit organizations with separate strengths and programming philosophies.
And consolidation, particularly over the last two decades, has given artists fewer options than ever.
But the consolidation of broadcast ownership — that the Federal Communications Commission willfully accelerated last year — appears to be rendering such demand irrelevant.
Even before the consolidation, the process was drawing comparisons to the litigation that led to a far-reaching settlement with tobacco manufacturers in the early '90s.
Critics of financial industry regulations stemming from the 2010 Dodd-Frank law have blamed those rules for fueling consolidations of community banks, a primary source of lending to small businesses.
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Financial Definition of CONSOLIDATION
What It Is
How It Works
Perhaps one of the most obvious examples of industry consolidation can be seen in the evolution of public accounting over the twenty years. In 1986, nine large accounting firms dominated the industry. But in 1987, Klynveld Main Goerdeler (KMG) merged with Peat Marwick Mitchell to create KPMG Peat Marwick, reducing the number of top-tier players to the "Big Eight." Then in 1989, Ernst & Whinney merged with Arthur Young, and Deloitte Haskins & Sells merged with Touche Ross, further consolidating the industry to the "Big Six." In 1998, the merger of Price Waterhouse and Coopers & Lybrand created the "Big Five," and the dissolution of Arthur Andersen in 2002 left the "Big Four."
Another, more recent example can be found in the online brokerage business, where after several rounds of consolidation, three major competitors have emerged: E*Trade (following its acquisitions of BrownCo and HarrisDirect), Ameritrade (which recently won a bidding war for TD Waterhouse), and Charles Schwab.
Why It Matters
One of the driving forces behind consolidation is the operating efficiencies that often arise from mergers. Because the merged entities can merge existing operating structures and reduce any overlap, there is usually an opportunity to realize significant cost savings, as well as related revenue synergies. There are numerous other reasons which might cause a company to acquire a rival, like gaining an expanded geographic reach, a larger customer base, a broader product line, etc.
Like oligopolies, duopolies, cartels, and other environments in which a few companies control all or a significant portion of an industry, consolidations alter the balance of power in an industry. Investors should carefully consider the ramifications that merger and acquisition (M&A) activity might have on the competitive landscape.
- pneumonic consolidation
- areas of consolidation
Seen and Heard
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