What is a conglomerate in business?

Conglomerate in business is defined as a company that comprises several subsidiaries doing business in often unrelated industries. Usually, subsidiaries are a result of acquisitions or mergers. They are headed by separate CEOs and conduct business independently.

Do conglomerates have subsidiaries?

Conglomerates are large parent companies made up of smaller independent entities that may operate across multiple industries. Each of a conglomerate's subsidiary businesses runs independently of the other business divisions; but, the subsidiaries' managers report to the senior management of the parent company.

How does a company become a conglomerate?

Conglomeration is the term that describes the process by which a conglomerate is created when a parent company begins to acquire subsidiaries. Companies can become conglomerates can be created in a variety of ways, and sometimes in a combination of ways. The most common way is via acquisitions: simply buying other companies.