How to Research a Private Company
Private companies present a challenge to the researcher. Unlike publicly traded companies, privately held firms, with few exceptions, do not provide detailed financial statements to the public. Yet private companies represent the vast majority of businesses in the U.S. Private companies are not limited to mom-and-pop stores, but also giants such as Cargill, Hilton Hotels and Toys "R" Us.
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Instructions
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Check the directories. Most public libraries have directories such as Hoover's or Ward's Business Directory that will help you locate private companies by name, industry, geography, or other criteria. This is good first step, because it helps you more precisely identify the companies in question. This step will also provide you with the North American Industrial Classification System code that may expedite later parts of your research.
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Find out the history of the company. Some private companies were previously public. If that is the case, you can get complete financial statements on the company up until it went private, by going to the Securities & Exchange Commission database, EDGAR.
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Use rankings, such as the Fortune 1000 list. There are many sources of company rankings, and a great directory of them can be found on Gary Price's List of Lists. Rankings can give you an idea of the relative strength and market share of a company.
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Go to government sources. No matter which state you live in, you should be able to find public records regarding incorporation and other filings. To get started on this phase of your private company research, visit the National Association of Secretaries of State list.
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Perform an article search. Articles in newspapers and magazines may provide enough "pieces of the puzzle" for you to complete your private company research.
Start your article search by looking at trade journals. Almost every industry is represented by one or more trade journals. These are publications closely followed by people who work for and invest in particular industries. For example, Women's Wear Daily is an important fashion trade publication, while Progressive Grocer covers all aspects of grocery stores. Most libraries will subscribe to a database that contains the full text of trade journals, and some trade journals have free web versions. Sometimes you will find articles on a company's financial performance or strategy in a trade journal article.
Then look for articles in the local business press. A great way to do this for free is to visit the American City Business Journals website. You can also see if your library subscribes to databases such as Newsbank or Factiva. These resources provide full text coverage of local newspapers.
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References
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