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Re: MethodMan post# 37413

Monday, 09/01/2014 5:35:06 PM

Monday, September 01, 2014 5:35:06 PM

Post# of 96786
I would venture that each of the Master Distribution Agreements and licenses, etc. were formed as separate legal entities and now all are controlled by the Holding Company instead of CYBK the shell.

Advantages:
1. Limited liabilities for the Holding Company in the event that a particular contract fails to perform
2. Financial leverage for forming subsidiary companies (contract holding entities)
3. Legal control over the leveraged entities
4. Lowers taxes

Now down the road CYBK the shell could potentially own percentages of Hall Holdings LLC, XYZ Holdings LLC, etc. just like Berkshire does in the article I posted. So CYBK the shell could increase or decrease its percentage holding in any of the Holding Companies its invested in without increasing risk to itself. That's my uneducated guess based on the article.

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