Jerah Y.

Torrejos

Merger is different from consolidation. Merger is a process in which one or more

companies merge into a single surviving entity. For example, if company X and Y do a
merger, the resulting entity would either be X or Y. Merger is beneficial when one
company is smaller than the other. In this way, the smaller company will benefit by
having greater brand recognition and market reach due to merging with a larger
company.

Consolidation, on the other hand, is when one or more companies consolidate

and become a new operating entity. For example, if company X and Y do a
consolidation, the resulting entity would be Z, which is a different entity altogether. This
is useful when companies would like to start anew and make a new brand or attempt to
make a hybrid entity and capitalize on both brands.

Reference:

What is the difference between mergers and consolidations? (2020, July 23). Retrieved
September 08, 2020,
https://www.bakerfirm.com/blog/2018/04/what-is-the-difference-between-`
mergers-and-consolidations/