Corporate Pyramiding Maximizes Control Using Leverage
Corporate pyramiding takes place when the controlling shareholder of a corporation uses that corporation to control another corporation and that corporation controls another and so on. For example, a 51% shareholder of corporation A acquires a 51% stake in corporation B. Corporation B now acquires a 51% stake in corporation C and so on down the line. The ability to leverage the original investment in huge. Contact Michael Chulak for corporate consulting services.