A company's structure impacts the information that can be found about it. When choosing companies to research, test-search first to determine structure and the whether the amount of information available will be enough for your needs.
Parent or subsidiary company?
- A parent is a company that owns other companies, called subsidiaries. For example, Nike Inc. is a parent that owns the subsidiaries Converse and Hurley International.
- When researching a subsidiary, it is helpful to also look at information about its parent.
- Alternatively, a company may be independent, which means it is not owned by, nor owns, other companies.
Public or private company?
- It is much easier to locate financial and business information for public companies, than for private companies.
- Public companies' ownership is dispersed among many investors who buy shares in the company on a public stock exchange. Public companies are required by law to openly report some aspects of their financial dealings.
- Private companies, in comparison, are owned by private individuals or entities and are not required to share their financial information with the public.
Additional tips for researching companies:
- Anticipate that not all information will be made public, no matter how well known the company.
- Rely on a variety of resources and seek multiple viewpoints. Perspectives provided by the company may be very different than those external to the company.
- Gather information from business news, such as industry magazines, national newspapers or news sources local to the business. Sometimes news articles provide financial estimates and details not available elsewhere.
- Analyze the company directly. Visit the store or website and note the products sold, presentation and price points. Observe the shoppers or look at the company's social media to consider who they are trying to reach. You may also ask to speak with someone within the company for your research.
