A consolidation method is a process of merging two or more small companies to form a single entity that works in alignment with the single goal of the companies or the parent company. The basic aim of consolidation is gaining a competitive edge in the market, increasing creditworthiness, reducing and optimizing costs, and increasing market presence. The companies aim to reduce market competition, better resource deployment in innovation and development, and increase in the talent pool at optimized costs. It has to be a data-driven, highly informed, and deeply researched decision.