What can lead to improved cost structure during a consolidation?

During a consolidation, the effort to merge operations or integrate companies often reveals overlapping roles and functions within the organizations involved. By identifying and reducing redundant functions—such as duplicated departments or roles that perform similar tasks—companies can streamline their operations. This elimination or consolidation of overlapping functions typically results in a more efficient use of resources, leading to a lower overall cost structure.

Additionally, this improved cost structure can come from a more focused approach to achieving business goals, directing financial resources toward the most productive areas rather than maintaining unnecessary expenses associated with redundancy. The goal of consolidation is to create synergies that enhance overall performance, and reducing redundant functions is a key component of achieving that aim.