Overview with tools, template, software, best practices and alternatives

Why do Holdings & Holding Companies do Reports?

A holding company is a company that takes possession of the outstanding stocks of other companies. They hold the stocks of other firms, a reason for the term “holdings” and “holding” company. This type of company does not also have goods or services of its own. It just exists to own shares of other companies, enabling it to establish a corporate group. There are risks in the stock market and such risks are what a holding company reduces. In addition, it can also control several companies as it holds their stocks.

Holding companies generate reports so as to communicate with its client companies. The reports made by holding companies contain information on the status and progress of the stocks that the holding company holds for other companies. It lets other companies know what is happening in their shares, now that another company owns it.

The reports produced by holding companies can also show positive information, such as increase in the stock value. When this update reaches other companies, then they might also consider lending their stocks or shares to the holding company. As a result, the holding company gains more clients and affiliates.

Holding company reports can also reveal negative issues, such as decrease in stock value. This information will inform the holdings’ clients, allowing them to understand possible roots of the decline in the value of their shares.

How do Holdings & Holding Companies usually do Reports?

Holding companies are organized to own stocks in other companies. They usually write reports to update their subsidiaries, or the companies that they control.

Holding company reports should include important information, such as the list of its subsidiaries, the time period when they became stock associates, as well as the financial statement of the subsidiaries.

The list of subsidiaries should be included in the report, in order for the holding company not to miss any of the clients it controls. It also lets the holding company have a clear oversight on various subsidiaries that it governs. Listing all the subsidiaries of a holding company will help the latter monitor the trends in the market values of the stocks given by each subsidiary.

The time period when the holding company and the subsidiary came in contact and became associates can also be included in the holding company’s report. This is to have a clear view of the duration of their formal partnership. It also allows the holding company assess and evaluate the changes in the shares of its subsidiary. Moreover, it also helps the holding company prepare a final report for a company that is for termination of contract.

The report for a holding company also includes the financial statement, the most significant among the three ideas to include in the report. The financial statement shows the current monetary status of the subsidiary, reflecting its financial status. Also the financial statement presents the growth of the stocks or shares, indicating its growth or decline within a specific time period.

Typical questions/metrics/topics that are usually covered in reports Holdings & Holding Companies are doing

Reporting for Holdings & Holding companies covers the following:

  • How many subsidiaries do you have today?
  • How many prospect subsidiaries are you planning to contact tomorrow?
  • How many subsidiary prospects have you listed today?
  • How many subsidiary prospects have you contacted today?
  • Did you encounter any problem today? What problem is it?
  • Do you see any forthcoming problem in the future? What is it?
  • What solutions can you think of to solve actual problems?
  • What actions can you think of to prevent potential problems?
  • What do you think are the strengths and weaknesses of the team?
  • Do you see any open opportunities for the team?

Advantages & Best Practices of doing Reporting for Holdings & Holding Companies

Holding company reports help various companies on their funds, in the form of stocks and shares. Usual holding companies are banking, utilities, broadcasting, and personal holding.

Reports for holding companies help show opportunities for structural leverage. Leverage facilitates growth of funds without having to work hard. Since holding companies have a list of its subsidiaries, they also have to update the linked affiliations of their partner companies. This is to monitor the activities and cash flow of each subsidiary. A holding company’s subsidiary can also become a holding company, which can have its own subsidiary as well. This is where leverage comes in. Because the subsidiaries of the holding company gain their own subsidiaries, it will appear that the holding company has many subsidiaries.

A holding company report can also reveal assets that are put in “silos.” For instance, if an employee steals the money of the holding company, making it bankrupt, the parent company of the holding company can place it into receivership and form a new property management group the following day. Once a holding company becomes destroyed, it will not affect other associates.

The reports of a holding company, provides consolidated information to its subsidiaries, making the holding company a good investment vehicle. By presenting achievements, plans, and problems in the report the holding company team or the subsidiary team will be able to formulate goals, set strategies and actions to be implemented, and evaluate outcomes.

Disadvantaged & Pitfalls at doing Reporting for Holdings & Holding Companies

While reporting for holding companies has various advantages, it also has some disadvantages.

Some holding company reports just focus on strengths and opportunities open for the subsidiary company. This will leave the subsidiary unaware of the company’s weakness as well as the threats that it has. This one-sidedness and lack of transparency can be viewed as doubtful in the perspective of other companies. As a result, the holding company may lose the trust of its subsidiary, giving it an option to withdraw from being an associate of the holding company.

Since holding companies take hold of the finance of other companies, it is important that the report has complete and accurate information. Some reports have incomplete and inaccurate information, which presents false outcome to the subsidiary. This error in the report can lead to errors during the planning stage as well as flaws in decision making for the future.

Writing holding company reports can also be time-consuming, since stocks and shares reveal numbers and numbers are figures. Figures should be highly accurate as the future plans and actions of the team depend on it. High accuracy of data requires adequate time to assess and evaluate the validity of information. As a result, generating a highly detailed holding company report can consume the time intended for other tasks and responsibilities of the team.

Why Teamreporter is great in doing Reporting for Holdings & Holding Companies?

Teamreporter is a unique reporting application, which aims to decrease the number of status meetings a team holds within a specific time frame. The application uses scheduled mail reports to replace the status meetings. It is free to use for holding company teams with up to four members. Signing up for an account just takes less than a minute, allowing team members to easily secure their accounts.

Teamreporter allows easy and fast communication among team members with its easy-to-use and automated system. It will send a notification e-mail to all team members and it will ask them to submit information, primarily their accomplishments, plans, and issues. Teamreporter will generate a brief report based from the answers of the team members. The summarized report will be sent to the team members the following day. With its simplicity and automaticity, Teamreporter allows successful exchange of information between team members.

Flexibility is another asset of Teamreporter as it can be utilized with an e-mail and a web browser. Also it can be linked to other applications a team is using. More than that, the questions in the application can be modified, to suit the workflow of the team and the business itself. Teamreporter can also be configured, allowing users to set the members who will receive the mail and those who will be reminded to send a report.

Teamreporter is flexible as team members can modify the questions in the application. Aside from changing the queries in Teamreporter, team members can also select the scheduled report mails and adjust the time at par with their workflow. Also, Teamreporter can configure a list of its recipients, allowing the team to select those who need to receive the report and those who should be reminded to submit a report. More than that, Teamreporter can be also integrated to existing applications team members use.

Teamreporter is also beneficial to team leaders. With the information it sends to the team, the team leaders will have a complete tracking of the entire team, allowing them to know how each team members perform individually and how the team performs as a group. Additionally, team leaders will be able to spot top players from the team, as well as those who need extra supervision.

Above all, Teamreporter stands as an effective means of communication for teams of holding companies.

Learn more about Teamreporter

Teamreporter is free for small teams (up to 4 members)