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What is a conglomerate & how does it work?

A conglomerate is a multi-industry company, meaning it is a corporation that owns a variety of subsidiary businesses in different industries. Unlike focused companies, which specialize in a single market or product area, conglomerates diversify their business risk by investing in a wide range of industries.

What is a conglomerate company?

A conglomerate is a corporation of several different, sometimes unrelated, businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, conducting business separately and independently.

What does conglomeration mean?

Conglomeration describes the process by which a conglomerate is created, as when a parent company begins to acquire subsidiaries. Sometimes conglomeration can refer to a time period when many conglomerates are formed simultaneously.

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