Konzernunternehmen

Konzernunternehmen is a term used in German business language to denote an individual company that belongs to a corporate group (Konzern). A Konzern consists of a Konzernmutter (the parent company) and one or more Tochtergesellschaften (subsidiaries) that are legally independent but economically controlled from the top of the group. The Konzernziel is to coordinate strategy, financing and operations across the different units.

The parent company typically exercises control over the subsidiaries through majority ownership of voting rights, representation on boards, or other binding agreements that enable the parent to direct policy and management. This control enables the parent to align the subsidiaries with the group’s strategic objectives, asset allocation, and risk management. While Konzernunternehmen retain their own legal personalities, they operate within the common framework set by the Konzernführung and may share services, brands, or distribution channels.

In practice, a Konzernunternehmen can be a local or international unit that contributes to the group’s performance, specialization, or market coverage. The relationship within a Konzern is characterized by intercompany transactions, shared governance, and centralized functions such as financing, accounting, and procurement, albeit while preserving legal autonomy.

From a legal and accounting perspective, the existence of a Konzern often triggers consolidated reporting. Under German law and international standards (HGB and IFRS), a Konzernabschluss (consolidated financial statements) aggregates the financial results of the Konzernmutter and its subsidiaries, with minority interests disclosed where applicable. The concept hinges on the ability to exercise control, rather than merely ownership, over the strategic decisions of the Konzernunternehmen.