What are the differences between these companies?
What are the differences between sister company, mother company and parent company? Did I miss any?
- 9 years agoFavorite Answer
Sister companies are any two companies that are owned by the same company or conglomerate, or two brands or product lines in the same company. Any of the above that are in different fields or complement each-other can constitute "sister companies" although it is usually two companies that are effectively the same because of their owner but don't necessarily perform the same function. It could also be the same company split up into different organizations in cross-border situations.
(Ex. McDonalds, McDonalds Canada, McDonalds UK, McDonalds China, McDonalds Russia, etc.)
As for "parent" and "mother" companies, a parent company is any company or conglomerate that owns other companies. When a company acquires many other companies in diverse fields it is not usually referred to as a parent company but as a conglomerate, an organization with significant control over a significantly large number of companies. The Carlyle Group is a perfect example. While "mother" companies are usually just another way of saying a "parent" company, it can also refer to a company that created another corporation. This differentiation can sometimes be important because certain corporations might create other companies that either separate and become autonomous organizations, or are bough by another company. In the first case the company might not have any other owner, but could still have a "mother" in the company that "birthed" it, or whatever verb you would prefer to use. In the second case the "parent" would be the new owner, while the "mother" would be the company that originally started the company in question.