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 growth in the podcast industry has led to consolidation, as larger players seek to establish their dominance. Wendy Lee, Los Angeles Times, "Podcast listening has reached a zenith— thanks to millennials," 14 Aug. 2019 Some experts predict the deal, if successful, will lead to a much more dramatic consolidation of newspaper ownership, with Tribune Publishing, McClatchy and other chains discussed as companies that may join others. Washington Post, "Is bigger better? Gannett merger will test whether local news can be saved," 9 Aug. 2019 But the practice can also lead to consolidation, reducing the overall number of stations. Tony Rehagen, BostonGlobe.com, "Farewell to hot dog rollers and roadside chats: an elegy for the American gas station," 11 July 2019 Williamson called for consolidation of services in one place, so homeless people don’t have to figure out how to navigate a fractured system of resources. San Diego Union-Tribune, "Democratic candidates for mayor describe plans in forum," 9 Aug. 2019 The result has been the consolidation of political power and the near disintegration of representative democracy. Justin Amash, Twin Cities, "Justin Amash: Our politics is in a partisan death spiral. That’s why I’m leaving my party," 10 July 2019 Since 2000 a big trend in American business has been domestic consolidation. The Economist, "Investors and regulators fall out of love with colossal deals," 6 July 2019 The result has been the consolidation of political power and the near disintegration of representative democracy. Justin Amash, The Denver Post, "Justin Amash: Our politics is in a partisan death spiral. That’s why I’m leaving the GOP," 5 July 2019 Gregory Sanders, who researches federal defense contracting at CSIS, says that missile spending at home and abroad isn’t the only reason for the consolidation. Tim Fernholz, Quartz, "What’s driving defense consolidation? Missile money," 15 June 2019

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

13 Sep 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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