How Do I Research a Company?
Begin your search by determining if the company is privately held, publicly held, a subsidiary or a division. An easy way to do this is by using The Directory of Corporate Affiliations. If the company is publicly held, you will find a lot of free information, because publicly held companies must keep their shareholders informed of their financial position. However, if the company is privately held, or a subsidiary or division, you may find very little information.
Take a look at Researching Companies Online if you want an introduction to locating all types of company, and industry information over the internet. The site logically organizes a variety of links into separate sections, the last of which is a useful tutorial on creating search strategies.
Other resources to use that will differentiate between privately-held companies, publicly-held companies or subsidiaries include D&B Million Dollar Directory, Ward’s Business Directory or Reference USA. Each of these resources will give basic information about the company including address, sales, officers and industry classification.
Now that you've identified your company by name and type, you're ready to proceed.
>>> How Do I Research a Public Company?
>>> How Do I Research a Private Company?
>>> How Do I Research a Subsidiary or a Division?
How Do I Research a Public Company?
A wealth of information is available on publicly-held companies, because they are legally required to keep the business world informed about their financial position. They must publish an annual report for their shareholders and file a 10-K report with the Securities and Exchange Commission (SEC). Both of these documents can be viewed using Mergent FIS Online. The 10-K is also available at www.sec.gov.
Reading these documents is a good way to start your research. Since the annual report and 10-K contain detailed financial data that can be difficult to interpret, the serious researcher may want to consult a book on how to read a financial statement such as Financial Statement Analysis or How to Read an Annual Report. However, some important parts of the annual report, such as the opening letter to shareholders, the financial highlights which follow and the independent auditor's report at the end are easily understood and should not be missed.
Mergent FIS Online (listed on our E-Resource page) is one of the most comprehensive sources of information on publicly-held companies. It profiles more than 10,000 companies and includes business summaries, histories, lists of properties and subsidiaries, insider holdings, up-to-date news headlines and detailed financial data. The print version, Mergent Manuals, is slightly less comprehensive, since it does not present entire annual reports or 10-Ks, or up-to-date news coverage.
Standard & Poor's Corporation Records are similar to Mergent Manuals, but not as comprehensive. Each record has a description of corporate background, stock data like recent dividends and availability of dividend reinvestment plans, company earnings and other financial information.
At this point you may want to visit the company's Web site. The resources you've already looked at will have provided the company's Web address, but you can also search using one of the large search engines like Google. Keep in mind that, like the company's annual report, the company's Web site is designed to show it in the best possible light.
A good way to proceed in your research is to use an investment service. Investment services are designed to advise investors on good stock purchases. Value Line Investment Survey is one of the most respected services. It provides in-depth coverage of more than 1,700 stocks. Each one-page report contains a short analysis summarizing the company's prospective performance as an investment, as well as figures and charts indicating the value of the company's stock.
Yahoo Finance provides some of the same stock information without the ratings and advice of an investment service.
At this point in your research, you'll have a good idea about the company's current status. To round out your research, it's a good idea to delve deeper into the company's history. Hoover’s Handbook of American Business features more than 700 major U.S. publicly-held companies. Each profile features a concise company history, as well as a chart of historical financial information. Likewise, Hoover's Handbook of of Private Companies does much the same for privately-owned companies. Hoover's also offers a free website (www.hoovers.com) which covers more companies, but does not provide as much information. For a more detailed history, use the International Directory of Company Histories. Each profile is several pages long, covering the entire history of the company.
Don't forget that books are written about many well-known companies or the people who run them. Many books cover the entire history of a company, while others discuss major company events. The Electronic Catalog will help you identify these books.
So far, much of the information you've looked at has been of a factual nature. Where do you go to find more sensitive information like criticism about the company or its officers, legal proceedings the company may be involved in, or predictions of future activity? This type of information is critical to fully rounded research of a company. Periodical and newspaper articles will provide timely information of this nature. Business Source Premier , Corporate ResourceNet, and ABI/INFORM Research, are electronic databases Brooklyn Public Library subscribes to and may be found in our E-Resource section. They provide the full text of thousands of business articles. The Business Library also subscribes to more than 1,400 business and trade journals, which can be identified using the Electronic Catalog, and we also have the entire run of The New York Times and The Wall Street Journal.
How Do I Research a Private Company?Since a privately-held company's financial position does not have to be disclosed to the public, it is often difficult to find information about it. Large private companies are usually profiled in company directories, but when financial data like sales figures are provided, they are usually only estimates. Sometimes the only information you'll be able to find on small private companies is their address and phone number.
By now you should have used D&B Million Dollar Directory, Ward’s Business Directory or Reference USA (located in our E-Resource Section). Each of these resources cover some privately-held companies and will give basic information about the company including address, and sometimes sales estimates, owner or chief officer, and industry classification.
Specialty directories are a very good place to look for information on private companies. They are published by type of product, industry or geographic location. The Business Library holds many directories of this nature. For example, some industries, like management consulting, are mostly comprised of private companies. The Business Library holds the Directory of Management Consultants and the Consultants and Consulting Organizations Directory. The Business Library also holds directories for every state. For example, we hold the New York Manufacturers Directory or the Illinois Industrial Directory. If the company is a manufacturer, try Thomas’ Register of American Manufacturers or the online version, www.thomasregister.com. The Business Library's Serial's Catalog will help you find these directories.
Visiting the company's Web site may reward you with more information. Large private companies may have a substantial Web site. The resources you've already looked at may have provided the company's Web address, but you can also search using one of the large search engines like Google. Contacting the company, either by phone, through their Web site or by writing to their customer relations department and requesting information, sometimes pays off.
By now you may have gathered some information about the company's current status. If the company you're researching is one of the larger, well-known firms, you should be able to round out your research by examining its history. Hoover's Handbook of Private Companies profiles more than 750 private companies. The online version is Hoover's Company Profiles. Each profile features a concise company history, a chart of historical financial information, and a list of officers and competitors. Hoover's Company Capsules covers more companies, but does not provide as much information. For a more detailed history, use the International Directory of Company Histories. Each profile is several pages long, covering the entire history of the company.
Don't forget that books may be written about some of the more well-known companies or the people who run them. Many books cover the entire history of a company, while others discuss major company events. The Electronic Catalog will help you identify these books.
At this point you may have found very little information about the company, especially if it's not one of the larger private companies. One of the most important steps in the research of a private company is to search for periodical articles. Sometimes this is the only way to find out about a private company. Business Source Premier, Corporate ResourceNet and (all listed on our E-Resource page) provide the full text of thousands of business articles. The Business Library also subscribes to more than 1,400 business and trade journals, which can be identified using the Electronic Catalog, and we have the entire run of The New York Times and The Wall Street Journal.
Smaller private companies are sometimes mentioned in regional newspapers or magazines, which can be found through the same electronic resources. The Business Library holds several Crain Publications that cover particular regions or industries and often contain special issues that include private companies.
How Do I Research a Subsidiary or Division?
Subsidiaries and divisions can have both publicly-held and privately-held parents. Even if their parent is a public company, a subsidiary or division is difficult to research because it is not required to publish an annual report or 10-K. However, if the parent company is publicly held, its annual report or 10-K may have information about the subsidiary or division buried in it.
Sometimes the only way to research a subsidiary or division is to research the parent company. By now you should have used The Directory of Corporate Affiliations to determine where the subsidiary or division fits into the parent company's hierarchy. Follow the steps outlined in How Do I Research a Public Company? or How Do I Research a Private Company? to gather information about the subsidiary or division. Keep in mind that searching for periodical articles, as described in these sections, is often one of the most successful ways of finding information on subsidiaries and divisions.
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