Consolidating business operations

Businesses expand through either organic growth or acquisition.When a company buys another company, it might become sufficiently large to serve customers on a national or international basis.Other conglomerates, like Warren Buffett's Berkshire Hathaway or Richard Branson's Virgin Group, acquire smaller businesses with strong talent pools.Over time, a series of successful mergers can result in significantly large, powerful, multinational corporations.

For example, airline mergers lead to the consolidation of maintenance facilities, which improves the utilization of both the facility square footage and the maintenance staff.

Many organizations are consolidating back-office functions across business units, companies and geographical locations.

Some establish Shared Service Centers to provide non-strategic roles such as accounting or HR to the entire organization.

There may be amalgamations, either by transfer of two or more undertakings to a new company, or to the transfer of one or more companies to an existing company".

Consolidation is the practice, in business, of legally combining two or more organizations into a single new one.