Corporate parent linkages.pdf
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Linkage, in general terms, is the relationship between different companies or specific sites within a corporate family. Linkage occurs in the D&B global database when one business location has financial & legal responsibility for another business location.
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Corporate parent linkages.pdf
- 1. Corporate Linkage Understanding Corporate Relationships Headquarters A headquarters is a business establishment that has branches or divisions Linkage, in general terms, is the relationship reporting to it, and is financially responsible for between different companies or specific sites those branches or divisions. If the headquarters has within a corporate family. more than 50% of capital stock owned by another corporation, it also will be a subsidiary. If it owns Linkage occurs in the D&B global database when more than 50% of capital stock of another one business location has financial & legal corporation, then it is also a parent. responsibility for another business location. There are two types of linkage relationships in the D&B Branch A branch is a secondary location of its database: headquarters. It has no legal responsibility for its debts, even though bills may be paid from the •Branch to headquarter, linkage branch location. •Subsidiary to parent, linkage Division A division, like a branch, is a secondary There are other types of family relationships that location of a business and it carries a branch code occur which are not linked in the D&B database in the D&B database. because the affiliated company has no legal obligation for the debts of the other company. Limited Partnership A limited partnership is a Examples of these types of relationships include partnership with at least one partner with businesses affiliated through common officers or management responsibilities (the general partner) situations where one corporation owns a part or and at least one passive investor (the limited partner). minority interest in another (50% or less) and joint ventures, where there is a 50/50 split in Subsidiary A subsidiary is a corporation whose the ownership. capital stock is more than 50% owned by another corporation and will have a different legal business The D&B D-U-N-S Number is a unique, nine-digit; name than its parent. non-indicative identification number assigned to every business entity in D&B’s database. The Parent A parent is a corporation that owns more than D-U-N-S Number is the first step towards 50% of another corporation’s capital stock. The parent understanding corporate relationships. company can also be a subsidiary of another corporation. If the parent also has branches, then it is Understanding Business Classifications a headquarters as well as being a parent company. There are different classifications for businesses Domestic Ultimate The Domestic Ultimate is an entity in D&B Global Database within the family tree that is the highest-ranking member within a specific country. Stand-Alone Businesses Stand-alone businesses are entities which do not have any linkage Global Ultimate The Global Ultimate is the top most relationships e.g. headquarter, parent, branches responsible entity within the global family tree. or subsidiaries. Single Location Subsidiary A single location subsidiary has a parent who owns >50% of its capital stock, however, it does not have branches or subsidiaries reporting to it.
- 2. Defining Corporate Responsibility Maintaining Corporate Linkage For the purpose of linking these relationships to define The cornerstone of our linkage data maintenance strategy corporate responsibility, each family member carries up is the top down review process, which is performed on 5,000 to four D-U-N-S Numbers. of the largest, most globally active trees, including every family that has more than 250 locations or $1 billion in sales. •Its own Site D-U-N-S Number These families represent 20% of all of the linked records in •The next highest level in the family; parent or our files. These trees are reviewed at least once each yearly headquarter D-U-N-S a D&B analyst. We contact a knowledgeable source at the •The highest level within its country; its domestic ultimate parent company or one of its high-level subsidiaries ultimate D-U-N-S to ascertain the proper family tree structure. In addition to •Its top global ultimate; global ultimate D-U-N-S telephone interviews, we use annual reports, company websites and other local third party data to insure that all For example, the branch carries its own D-U-N-S Number, locations are included in the D&B tree. The trees created and its headquarters D-U-N-S, its domestic ultimate D-U-N-S, maintained through this process show the legal structure of and its global ultimate D-U-N-S. A subsidiary carries its a company, and contain only companies where there is own D-U-N-S Number, its parent, its domestic ultimate, majority ownership by a parent. and its global ultimate. We also track global merger and acquisition changes as The domestic ultimate is the highest member of the tree they are completed. Each merger and acquisition is in a specific country. The site D-U-N-S Number and investigated, and the tree is updated based on the results domestic ultimate D-U-N-S Number will all be the same of the investigation. This is a global program that covers on the domestic ultimate record. all mergers and acquisitions–it is not limited to the top 5,000 trees. The global ultimate record carries the same D-U-N-S Number in the site D-U-N-S field, the headquarters/parent D-U-N-S field, the domestic ultimate D-U-N-S Number and the global ultimate D-U-N-S field. This business is at the very top of the global family tree. D&B Solutions Find out how D&B Government Solutions Government Solutions can help you achieve your agency mission. Risk Management Solutions Call us today at 1-800-424-2495. Sales & Marketing Solutions Supply Management Solutions www.dnb.com/gov ©2006 Dun & Bradstreet, Inc. (0906))