# HoldCo (holding company)

An entity owning one or more operating businesses under it.

It is useful vocabulary for where a search can go once there is more than one company to own, but usually premature structure for a first purchase. Most first-time buyers acquire in a single operating entity and add a holding company only when a second acquisition or an investor structure actually calls for one.

In numbers: A buyer's holdco owns three companies: a $700k-[SDE](https://searchspheresource.com/glossary/sde) plumbing shop bought in year one, a sister shop tucked in two years later, and the payroll company both share; each subsidiary borrows on its own, the holdco consolidates the equity.

Source: https://searchspheresource.com/glossary/holdco
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

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