Glossary · People and paperwork
In short
A holding company is a legal entity that owns shares of other companies but doesn't produce goods or services itself. It's often used for structuring ownership and managing multiple businesses.
You might establish a holding company to own the operating company you're acquiring, especially if you plan to acquire more businesses later. This can simplify ownership and liability structures. Discuss the optimal legal structure with your attorney.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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