When I’m valuing a business, a key value driver I consider in my analysis is the state of the competitive environment the business operates within. The combination of competitive threats, price sensitivity, and customer dependence on the business’ product/service go to the heart of future profitability and growth. Even so, as I talk to business owners, I usually get one of two responses to my query on their competition: they have none or there are only a couple primary competitors. I’m often surprised that these business owners don’t grasp the competitive threats around them. Therefore I’m often left to do my own research on potential and actual competitors.
One source for competitive information is Thomas Register. Published for over a century, Thomas Register for generations was the set of large green books, often found in offices of purchasing agents and designers. It provides an extensive directory of companies, ranging from manufacturers of industrial parts to business services.
On line since 1995 (at http://thomasnet.com), the database is completely searchable by product/service category and location, either domestically here in the US or internationally. Each listing provides contact and description info, including size (by # of employees, $ sales, etc.). For example, search for “contract manufacturers of health and beauty products" and you’ll find listings that you can zoom in on or narrow the search with additional key words or by state/province, as well as a listing of related categories (such as “consumer product contract manufacturing”).
