DIY Guide: How to Research Companies

3. Getting a basic overview of the company


First of all, get the phone number of your target company: from directory enquiries if you know where it's based (London's always a good guess) or from a business directory, or the company's website. It's also worth checking whether the company you're researching is a subsidiary of a larger company or part of a larger commercial group. In many cases information will only be available via listings for, and resources on, the parent company. The best way to check this is using the directory Who Owns Whom (see Business Directories).

The Annual Report
If you're researching a plc, that usually (not quite always) means the company's listed on the Stock Exchange - in other words you could buy shares in it if you wanted to. In that case, it is obliged to produce an annual report for investors and potential investors (i.e. you!). Some companies which you can't buy shares in also produce annual reports, especially publicly-owned companies. An annual report is basically a glossy report on all the company's activities over the previous year. It typically includes the company's accounts, a list of its directors, political and charitable donations etc. It will probably tell you where the company's major projects and facilities are and what they do, what its biggest brands are, and give you some idea of its culture. It will often tell you how much the directors get paid, and how many employees there are etc. A one-sided view of course, but a useful start, and often an easy way of answering some questions about the company. So phone up the head office and ask them to send you copies of the company's latest annual report and interim report. They will do this for free.

Alternatively, the Financial Times runs an annual reports service, where you tick which companies you want and they send them to you for free (it covers many, though not all, large British companies) - call 0208 770 0770 for an order form, or go to www.icbinc.com/cgi-bin/ft.pl on the web. You might also find back issues of annual reports in a library, especially a business library.

The company's website
The company's website will generally give you much of the information found in the annual report, and often more. Generally the larger and more publicly visible companies tend to have more sophisticated websites. For example, it is often possible to download annual reports and other company documents from their websites. You should be able to find a company's web address using an intelligent search engine such as Google.

Industry sources
Obviously companies' own sites are often extremely useful, however they do give you a rather biased view of the company's activities. If you want a more concise or impartial overview of a companies activities there are a range of business directories and websites you can look at (See business directories/websites). There are also broader industry sites which give plenty of information on an industry sector. One of the best is the Institute of Petroleum's site, at www.petroleum.co.uk , which has a detailed archive industry news section, links to companies and to various information pages, and plenty more.

SEC records
For companies registered in the US, the reports filed with the SEC provide an extremely useful source of information (see Using company registrars).

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