A parent company frequently has direct control over the operations of its subsidiaries, whereas a holding company does not. Holding companies are typically formed to group together several subsidiaries.

Conglomerates, on the other hand, are companies that own and control a collection of companies from various industries. This allows the parent company's subsidiaries to collaborate across brands and benefit from each other's resources.

Furthermore, by acquiring smaller companies, the parent company gains access to its staff and management, allowing them to bring on new talent to the group's benefit.