Consolidation


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Consolidation

The combining of two or more firms to form an entirely new entity.

Consolidation

A type of merger in which two or more companies create an entirely new corporate entity and transfer all their assets and liabilities to the new entity. The former companies may continue to exist on paper, but they have no assets or liabilities. For example, the lawyers for the consolidating companies may go the secretary of state and form a new limited liability company (usually by paying a fee of $50 or so). After this is done, all assets and liabilities are given to the new LLC.

consolidation

A combination of two or more firms into a completely new company. Assets and liabilities of the firms are absorbed by the new company. Compare merger.
References in periodicals archive ?
Non-registered shareholders who hold Common Shares through a bank, broker or other nominee should note that these intermediaries may have their own procedures for processing the Consolidation which may differ from those described above for registered shareholders.
The 2003 regulations expanded the applicability of the statutory merger or consolidation provisions, by expressly permitting a merger of a target into a limited liability company (LLC) that is disregarded as a separate entity from the acquiring corporation for Federal income tax purposes.
Edamerica is the nation's 9th largest student loan provider, offering a full range of Stafford, PLUS, consolidation and private loans with competitive borrower benefits and repayment incentives.
In a particularly telling example, the Italian case should have been the poster child for the benefits of fiscal consolidation through eurozone membership.
Server and storage consolidation projects are undertaken to achieve IT goals such as responsiveness to business changes, optimization and reduction of IT costs, and increased business efficiency.
The result is an initial assessment of the impact of institutions in changing transaction costs, and the potential relationship these changes played in the recently observed defense industry consolidation.
During a recent Webcast on this topic, Hyperion conducted an informal poll of finance and IT managers and found that more than half of the companies are still using spreadsheets and multiple general ledger systems for consolidation and reporting, and almost half reported financial closing and reporting cycles of 11 business days or longer.
Both Glendale and Burbank have vigorously opposed consolidation, saying it will deprive each city of a full-service courthouse.
Within a charged political atmosphere, the Financial Accounting Standards Board issued a revised exposure draft to clarify consolidation policy after its 1995 ED failed to obtain board approval.
The next few sections will be an examination of how centralized implementations of union catalogs meet the functional characteristics-the broad areas of consistent searching/indexing, consolidation of records, and performance/management--described above.

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