consolidation

noun
con·​sol·​i·​da·​tion | \ kən-ˌsä-lə-ˈdā-shən How to pronounce consolidation (audio) \

Definition of consolidation

1 : the act or process of consolidating : the state of being consolidated
2 : the process of uniting : the quality or state of being united specifically : the unification of two or more corporations by dissolution of existing ones and creation of a single new corporation
3 : pathological alteration of lung tissue from an aerated condition to one of solid consistency
4 : the process by which a new memory is converted into a form that is stable and long-lasting 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.

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Examples of consolidation in a Sentence

the consolidation of several intelligence agencies into one super agency

Recent Examples on the Web

The consolidation of fire departments has taken place in six of the nine townships, Bennett told cleveland.com. Peter Krouse, cleveland.com, "Achieving “Unigov” required political compromises in Indianapolis: Cleveland 2030, A Way Forward," 10 July 2019 Egypt’s new rulers wasted no time in making its capital city Thebes a vast ceremonial stage to celebrate the consolidation of power, and the Opet festival took center stage. National Geographic, "Egypt’s pharaohs welcomed summer with this fabulous festival," 25 June 2019 The consolidation can very quickly turn into a kind of monopoly power that diminishes our freedom. Casey Tolan, The Mercury News, "California 2020 Countdown: How presidential candidates could make a splash on crowded debate stage," 20 June 2019 The successful consolidation of democracy in Western Europe after 1945 was built on a foundation of organizationally strong, moderate parties of the center-left and right. Sheri Berman, Vox, "The development and decay of democracy," 18 June 2019 For shoppers, the consolidation means GameStop is placing all ThinkGeek.com items on sale for 50% off. Dallas News, "GameStop is shutting down ThinkGeek.com, and that means 50% off for shoppers," 17 June 2019 The acquisition intensifies the consolidation in the aerospace and defense industry as plane manufacturers press suppliers for better terms and the Pentagon puts more pressure on contractors to cut costs. Stephen Singer, courant.com, "United Technologies says it’s merging with defense contractor Raytheon and moving headquarters to Boston area from Connecticut," 10 June 2019 The consolidation of Konrad Adenauer’s CDU around democratic norms undoubtedly made a crucial contribution to the success of democracy in postwar Germany. Adam Tooze, The New York Review of Books, "Democracy and Its Discontents," 6 June 2019 Markey said the consolidation among major airlines has reduced competition, and that has allowed the airlines to increasingly rely on fees to boost their profits without fear of losing customers. Kevin Freking, Fox News, "US House approves $1.7 billion in disaster aid for Carolinas," 28 Sep. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'consolidation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of consolidation

15th century, in the meaning defined at sense 1

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Statistics for consolidation

Last Updated

19 Jul 2019

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The first known use of consolidation was in the 15th century

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More Definitions for consolidation

consolidation

noun

Financial Definition of consolidation

What It Is

In business, consolidation refers to the merger of several companies in a specific industry, which typically concentrates market share in the hands of a few large companies.

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.

Source: Investing Answers

consolidation

noun
con·​sol·​i·​da·​tion | \ kən-ˌsäl-ə-ˈdā-shən How to pronounce consolidation (audio) \

Medical Definition of consolidation

1 : the process by which an infected lung passes from an aerated collapsible condition to one of airless solid consistency through the accumulation of exudate in the alveoli and adjoining ducts pneumonic consolidation also : tissue that has undergone consolidation areas of consolidation
2 : the process by which a new memory is converted into a form that is stable and long-lasting 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.

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Comments on consolidation

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