Need information on conglomerate company

Discussion in 'Growing and Managing a Business' started by Hazel, Jul 25, 2014.

  1. Hazel

    Hazel
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    As I did not get any specific answer in the web articles to these questions below I have posted it here.

    1. Few small business from different industry under a parent company means it is a conglomerate company. Now my Question is How many small business from different industry needs to be there in a parent company to be consider as conglomerate company?
    2. The small business needs to be private or public company under the parent company to be define as conglomerate company?


    I would appreciate, if you could solve my query for both question 1 and 2.
     
    #1 Hazel, Jul 25, 2014
    Last edited: Jul 25, 2014
  2. Joseph.Shivell

    Joseph.Shivell
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    For future reference, your previous thread was removed because it was not specific enough. According to the thread, "How to ask a question on Business Advice Forum", your question should be specific, and provide background information to understand the reasons for your question, so a more helpful reply can be given. Although you did not give background information in this thread, such as what you may be doing that is related to your question, and/or why you asked the question, I have chosen to attempt an answer.

    According to Investopedia, a conglomerate is "A corporation that is made up of a number of different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies, which conduct business separately." By the way, the businesses owned by a conglomerate do not have to be similar, although they can be. They also are not necessarily "small" businesses.
    I could not find a definitive answer for your second question, but I would think a private company would be absorbed into the parent company, while the parent company would own a "controlling stake" in a public company, so I would think a conglomerate would consist of public companies.
     
  3. Arizona

    Arizona
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    A conglomerate is defined as 2 or more corporations that fall under the same corporate group..

    Take a look at a company like Honeywell in NJ. They are a large conglomerate. The public company, traded on the stock market has various business segments (3 or 4 I think) - these are the different market places they are in and are vastly different. Within these segments they have hundreds of companies rolling up into them. Private companies from all over the world, set-up as per the country rules and regulations.

    Conglomerates is not really a term that is banded about much anymore, usually you'll find terms like Holding company used instead - take a look at Berkshire Hathaway set-up under Warren Buffett.
     

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