Definition of consolidation
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.
Examples of consolidation in a Sentence
the consolidation of several intelligence agencies into one super agency
Recent Examples of consolidation from the Web
Federal officials believe the consolidation of NIOSH research facilities into one modern facility will reduce operational costs and strengthen scientific collaboration.
The wave of consolidations among health systems in Wisconsin is set to continue.
And the White House is perfectly comfortable with media consolidation — when such mergers increase the bandwidth of pro-Trump outlets.
Planned Parenthood closed clinics throughout Indiana, citing consolidations, operating deficits and state funding cuts.
Others suggest that tech companies’ obsession with scale and consolidation has gone too far.
The recession was still lingering and the region in the midst of a reorganization and consolidation effort.
Maine has formed at least 15 in that time period, with 11 of those forming since 2013, after consolidation was pushed in 2007.
As concentration has soared to levels not seen in decades, economists are talking about monopoly again; recent scholarship has linked consolidation with rising inequality and other economic ills.
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.
First Known Use of consolidation
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.
Medical Definition of consolidation
: 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
Seen and Heard
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