private-company, public-company, intrapreneurI want to start a private company “A” but then I want that company to own my other public company “B”, Will company B still be able to sell shares in the markets or not? Later on, I want to create another public company “C” part of “A”. So at the endpoint company “A” owns a few public companies. I’d prefer if “A” can be private for as long as possible.
Also then “B”,”C” gives money to “A” so that “A” can acquire more companies.
If we’re talking about US companies, if a company B is public this means it’s a C-corporation. When you say company A owns a C-corp what this actually means is that company A owns 100% of shares of that company. When B is not publicly traded company A can buy all 100% shares of B. However, if it’s publicly traded someone else has some of its shares. Company A can still own majority of shares to maintain control.
As far as where the money goes, it’s all possible in general. Is it possible in your case? Nobody can answer that without details.
Can an independent public company B invest in another company A that happens to be a major shareholder of B? Yes, provided there’s a valid reason for that. Otherwise, you’ll have not only IRS on your back, but also SEC.
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