Price Increase
Quote:
Originally Posted by Antonmb
Also subsidiary companies pay management fees to the parent for any services provided by the parent, such as engineering, payroll, accounting, etc., and of course have to pay dividends to the parent using their cash.
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AKA ‘Corporate Overhead’ on their P&L.
I agree, they likely have lower overall costs than within the ‘Sounds’ organizational structure. As others have hinted at, the question going forward is around how they retain/attract talent for design and engineering.
(This is not unlike Washington DC government overheads)
But it may only take one or two really sharp technical folks and clever marketing for then to thrive.
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Last edited by crwilli; 02-01-2021 at 11:34 PM.
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