Consolidation is the merger and/ or acquisition of many smaller companies into much larger ones. There are many ways in which companies can consolidate. They include: Statutory Merger (a business combination that results in the liquidation of the acquired company’s assets and the survival of the purchasing company); Statutory Consolidation (a business combination that creates a new company in which none of the previous companies survive); Stock Acquisition (a business combination in which the purchasing company acquires the majority, more than 50%, of the Common stock of the acquired company and both companies survive).
