What are subsidiaries, how to identify a valid subsidiary companies. https://nsconclave.net-square.com/effective-way-to-identify-subsidiary-company.html

1. GETTING STARTED WITH
How To Effectively Identify
Subsidiary Company
Yogesh K
NSConclave 2020

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Group structure
Holding Company
Parent company
Subsidiary A Subsidiary B
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Subsidiary Company
Holding Company
Parent company
Subsidiary A Subsidiary B
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• A subsidiary company or child company is a company
that is owned or controlled by another company, which
is called as a parent company.
• The subsidiary can be a company, corporation, or
limited liability company. In some cases it is a
government or state-owned enterprise. Subsidiaries
are either set up or acquired by the controlling
company.
• Subsidiary ownership is determined by the percentage
of shares held by the parent company, and that
ownership stake must at least 51% or more.

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Ownership of subsidiary to parent
• Subsidiaries are entities where the parent or holding company owns more than 50% of its voting stock.
• In contrast, if the parent holds 20%-50% of the voting stock of another company, that company is referred to
as an associate company.
• Further, where the parent holds less than 20% of another company’s stock, that investment is a minority
passive investment.
100% Ownership
Wholly
Owned
Subsidiary
Partially Owned

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100% owned is wholly owned subsidiary
• A wholly or Fully owned subsidiary is a company whose common stock is
100% owned by another company, the parent company. The parent
company has complete control over the subsidiary.
Starbucks Coffee
Company
Starbucks
Coffee
Japan
100% owned

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Example's of a Subsidiary company
Tata
Volkswagen Facebook
Pepsico

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Difference between a merger, an acquisition, a divestiture, and a spinoff?
An acquisition of a company occurs when all or part of a company is purchased by another
company. At other times, the shareholders of a target company sell their shares to a buyer
A merger is a form of an acquisition that is structured by combining the target company with
the acquirer (or its acquisition subsidiary) into one legal entity.
A divestiture can be any among a broad range of transactions that result in a portion of a
company, such as a subsidiary, a division, or a line of business, being sold to another party.
A spinoff is a type of divestiture in which the divested unit becomes an
independent company instead of being sold to a third party.

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Different sources to search subsidiary
Subsidiary search
Sec.gov search

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Subsidiary search
• Google search for the parent company, followed by “subsidiaries” (example:
Salesforce subsidiaries). If the company is well-known, Google provides an
interface allowing you to easily see a list of subsidiaries across the top, and as you
click on each one your search results below will change, helping you find the
domain for the company, if it exists.
Different sources to search subsidiary

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• It is an American business research company that provides information on
companies and industries through their primary product platform named
"Hoover's" & Research company relationships across locations and ownership.
Different sources to search subsidiary

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The U.S. Securities & Exchange Commission (SEC) Form 10-K is used for annual reports.
10-k filing for public companies can be used to provide primary evidence of subsidiary
ownership, or find subsidiaries. where we need to verify it hasn’t been since sold.
Different sources to search subsidiary

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• Crunchbase is a platform for finding business information about private and public
companies.
• Crunchbase information includes investments and funding information, founding members
and individuals in leadership positions, mergers and acquisitions, news, and industry
trends
Different sources to search subsidiary

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• Parent Logo & ownership
underneath logo
• Copyright
• Aboutus page
• Company Page
• Media press release
How to effectively identify subsidiary company
• History Page
• Privacy Policy
• Inurl

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Effective way to identify subsidiary company
1. Parent Logo & ownership underneath logo
Parent company
Subsidiary Company
2. Copyright
Parent company
Subsidiary Company

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Effective way to identify subsidiary company
3. About Us Page 4. Company Page
Wholly
Owned
subsid

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5. Media Press Release 6. History Page
Effective way to identify subsidiary company

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7. Inurl: 8. Privacy Policy
Effective way to identify subsidiary company

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Conclusion

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Conclusion