consolidation

noun con·sol·i·da·tion \ kən-ˌsä-lə-ˈdā-shən \

Updated on: 10 May 2018

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.

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.

— The Economist, "The case against the AT&T-Time Warner deal has gone badly," 5 May 2018
Today, the growth and consolidation of multinational corporations presents American democracy with genuine policy challenges.

— robert d. atkinson, The New Republic, "The Myth of the Roosevelt “Trustbusters”," 4 May 2018
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.

— jen skerritt, Bloomberg.com, "International Paper Says It Has Options If Smurfit Bids Fails," 26 Apr. 2018
The consolidation, announced Wednesday, will bring together two nonprofit organizations with separate strengths and programming philosophies.

— meg james, latimes.com, "PBS SoCal moving to Burbank as part of merger between public television stations," 25 Apr. 2018
And consolidation, particularly over the last two decades, has given artists fewer options than ever.

— matthew smith, Billboard, "Information Is Power: Why the Music Business Is Still Broken For Artists, And How to Fix It (Guest Op-Ed)," 5 Apr. 2018
But the consolidation of broadcast ownership — that the Federal Communications Commission willfully accelerated last year — appears to be rendering such demand irrelevant.

— eric levitz, Daily Intelligencer, "Local News Is Turning Into Trump TV, Even Though Viewers Don’t Want It," 28 Mar. 2018
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.

— lawrence specker, AL.com, "Shelby County files opioid suit, following other Alabama cities, counties," 26 Mar. 2018
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.

— deon roberts, charlotteobserver, "Charlotte area is nearing a banking milestone. Here’s why that hasn’t happened in years | Charlotte Observer," 6 Mar. 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.

First Known Use of consolidation

15th century

in the meaning defined at sense 1

See Words from the same year

NEW! Time Traveler

consolidation Synonyms

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite

Financial Definition of CONSOLIDATION

consolidation

noun

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

Medical Dictionary

consolidation

noun con·sol·i·da·tion \ kən-ˌsäl-ə-ˈdā-shən \

: 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