A family holding company is a company that has share control of other companies, usually owned by members of the same family. The main function of a family holding company is to coordinate and control the activities of the controlled companies, in addition to managing their investments and making strategic decisions.
Through the family holding, it is possible to centralize the financial and administrative management of the controlled companies, which can bring advantages in terms of efficiency and economy of scale. In addition, the holding company can facilitate the transfer of resources between controlled companies, allowing them to share resources and knowledge.
In some cases, a family holding company can be created with the aim of protecting the family's assets and ensuring the continuity of the business for several generations. In this sense, the holding company can be seen as a form of succession planning, allowing family members to control and manage their businesses in an integrated and structured way.
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