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what is
consolidation?
Process of combining two or more companies into a larger entity
Merger: This occurs when two companies agree to combine their businesses to form a new entity.
In a merger, the companies typically pool their resources, personnel, and operations to create a stronger, more competitive company.
Acquisition: This occurs when one company acquires another company by purchasing its shares or assets.
In an acquisition, the acquiring company gains control over the acquired company's operations, personnel, and assets.
Joint Venture: This occurs when two or more companies come together to undertake a specific business venture or project.
In a joint venture, the companies typically share the costs, risks, and profits of the venture.
Aims to achieve economies of scale, scope, or synergies
Can take forms like merger, acquisition, joint venture, or strategic alliance
Driven by motives like expanding market share or unlocking hidden value
Can be complex and risky, requiring due diligence, negotiation, financing, and legal compliance
Generates benefits and challenges for the company and its stakeholders
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