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Three ways companies can consolidate are: Horizontal merger \\textbf{Horizontal merger} Horizontal merger - when one business acquires another that is in direct competition with it. Vertical merger \\textbf{Vertical merger} Vertical merger - when one business acquires another that belongs to the same supply chain.

During a merger, essentially other corporate entities become a part of an existing entity. This can be useful for smaller companies merging into larger companies that have greater brand recognition and market traction. Conversely, a consolidation is when multiple companies join to form a new entity.

An example of a consolidation is when two companies merge together. The merger of two or more commercial interests or corporations. The act or process of consolidating. In corporate law, the union of two or more corporations into a new corporation along with the dissolution of the original corporations.

A merger is the combination of two or more entities into a single entity, with the resources of the original entities being pooled into the new entity. The owners of the original entities continue to be the owners of the merged entity.

Consolidation happens when two or more companies merge to become one. Also known as amalgamation, business consolidation is most often associated with M&A activity. 1 This generally happens when several similar, smaller businesses combine to form a new, larger legal entity.

The three main types of merger are horizontal mergers which increase market share, vertical mergers which exploit existing synergies and concentric mergers which expand the product offering. Mergers vs.Horizontal Mergers Increase Market Share.Vertical Mergers Create Synergy.Concentric Mergers Expand Offerings.

The term business consolidation refers to the combination of different business units or companies into a single, larger organization. Business consolidation is a legal strategy that is often initiated to improve operational efficiency by reducing redundant personnel and processes.