Groups absorb companies with high potential

Benjamin Nefussi, division Synthèse des statistiques d'entreprises, Insee

Among companies with 20 to 500 employees that were independent in 1999, one third were found to be controlled by a group in 2003. The probability of being absorbed by a group was greatest for large-sized companies. Sometimes, when it was very large, it was the company itself that formed a group by taking control of smaller companies. Nevertheless, whether the company absorbed or was absorbed, the entity thus formed rarely exceeded the threshold of 250 employees. Companies that entered a group over this period belonged to highly technology-based sectors and had a largely international focus. Before entering the group, they had often grown slightly faster than those that remained independent. After their integration, their expansion increased noticeably.

Insee Première
No 1144
Paru le : 04/07/2007