Glossary · People and paperwork
Subsidiary
In short
A company controlled by another company, often called the parent company. When buying a business, understand if it's a subsidiary and how that affects its operations or liabilities.
What it means in a deal
If the business you're buying is a subsidiary, its operations, financials, and legal structure might be intertwined with the parent company. Ensure you understand what assets and liabilities you are truly acquiring and if any shared services agreements need to be severed or renegotiated.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Subsidiary
Defined by CapBench 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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