Can't speak to the tax benefits as this will probably depend on industry and deal structure. However, a few benefits that come to mind are (1) common ownership (thinking reporting purposes--all companies roll up to one and reported consolidated), (2) separate legal operating entities (limited exposure to liability between operations--this protects the ultimate owner or group of owners at the holdco level too), (3) ability to leverage pooling of funds/resources to get better financial backing/discounting/etc. and (4) operations (each company focuses on their unique business). Also, think about what S-Corps would need to be converted in order to be held by another entity. S-Corp ownership has certain shareholder-level requirements.

Would like to hear thoughts on this as well.