rhizoverbBeta
DictionarysubsidiaryControlled company
noun

subsidiary

sub-SID-ee-air-ee/sʌbsˈɪdiˌɛri/

A company controlled by another company.

The company operates a subsidiary that makes batteries for electric cars.

A separately branded operating company under another company's majority ownership: its executive reports to the parent-company executive, who holds a majority-share certificate bearing the operating company's emblem.
Etymology
subsidiLatinaid, troops in reserve
+aryLatinpertaining to

The base subsidium meant aid or reserve troops, and subsidiary first described something kept ready to assist. In the business sense, it names a company subordinate to a controlling parent.

In context

Finance Interview Coach - Joshua Jia5:57
they only care about the part of the subsidiary you actually own they don't care about the part you don't own so they're only going to value your company as if you own 75 of the sub
Investment Banking Interview Prep - UCLA Lecture - Enterprise Value and Comps - Part 1 of 4

More examples

  • The bank sells its insurance subsidiary to another financial group.
  • Our overseas subsidiaries must follow local tax laws.
  • Even as a wholly owned subsidiary, the company keeps its original name.

Forms

subsidiary · subsidiaries

Similar words

affiliate
A connected company, not necessarily controlled by the other company.
division
An internal business unit rather than a separate controlled company.