Contact Menu
Baker, Dublikar, Beck,
Wiley & Mathews
330-470-7780

What is the difference between mergers and consolidations?

Once you have made the decision to join your business with another business, under Ohio law you are legally able to combine two or more entities into a single entity. Yet you still have a choice to make, and one of those choices is whether or not to undertake a merger or a consolidation. But what is the difference between a merger and a consolidation, and why choose one over the other?

Per the Ohio Secretary of State, a merger is when one or more business entities merge into a single surviving entity. For example, if you have Company A, Company B, and Company C, and Companies B and C merge into Company A, then Company A continues to exist with Companies B and C as a part of it. During a merger, essentially other corporate entities become a part of an existing entity. This can be useful for smaller companies merging into larger companies that have greater brand recognition and market traction.

Conversely, a consolidation is when multiple companies join to form a new entity. In this example, when Companies A and B consolidate together, the end result is a new operating entity, Company C. This can be useful when seeking brand differentiation from former entities, or starting anew with a brand refresh based on past reputation. It can also be useful if attempting to leverage the market capital of both brands by forming a new hybrid entity.

This has been an informational blog post meant only for reference purposes. It does not stand as a substitute for legal advice.

No Comments

Leave a comment
Comment Information
super lawyers a v | lexis nexis | martindale hubbell | peer review rated | for ethical standards and legal ability the best lawyers in america ohio state bar association | est 1880 stark county bar association
Email us for a response

Office Location

Baker, Dublikar, Beck, Wiley & Mathews
400 South Main Street
North Canton, OH 44720

Phone: 330-470-7780
Fax: 330-499-6423
Map & Directions

Contact Our Attorneys

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Back to top