M&A: Conglomerate Diversification
Interactive

M&A: Conglomerate Diversification

Intuition Publishing
Updated Sep 24, 2020

A conglomerate is a company made up of a number of different, seemingly unrelated businesses. Conglomerate stocks offer shareholders the benefit of diversification, but carry the potential drawback of becoming too unwieldy and difficult to manage. Here we look at how conglomerates opera, examine the pros and cons of such entities, and investigate the phenomenon of the conglomerate discount.