what are the tax benefits of a subsidiary 
a company with multiple subsidiaries can use the losses of one subsidiary to offset the profits of another thereby reducing its overall tax bill moreover non profit entities can establish for profit subsidiaries without endangering their tax exempt status the bottom lineacquiring a wholly owned subsidiary can be a relatively cost efficient way for a company to expand its product line or its geographic reach it may acquire a competitor thus expanding its own market share or invest in a part of its own supply chain making its production process more efficient the difficulty comes after the deal is done combining some operations is efficient replacing some management may be necessary but these changes must be made while avoiding disruption at the subsidiary as much as possible 