Centralized capital allocation

The parent sets capital-allocation priorities across subsidiaries and may approve local reinvestment or redeploy available cash elsewhere.

Centralized capital allocation in practice

Hypothetical: a parent reviews subsidiary cash needs quarterly, approves some local reinvestment and distributes available cash from one subsidiary to fund another. The transfer policy is an assumption; central decision authority does not require every dollar to move to the parent.

Decentralized operating model · Capital allocation · Holding company (holdco) · Self-funding flywheel · All of the glossary