Untangling the (Supply) Chains: Part 2

Untangling the (Supply) Chains: Part 1” covered popular databases for supply chain information. In Part 2, we highlight resources containing reports useful for supply chain research.

IBISWorld

The IBISWorld database is a popular resource for U.S., China, and global industry reports. Each Industry and Specialized Industry report on the IBISWorld platform includes a visual, interactive supply chain – click a buyer or supplier hyperlink on the supply chain to access a report for that industry.

Supply chain visual from IBISWorld's Solar Power in the U.S. report

The Products & Markets section of the report delves deeper into the industry supply chain, focusing on products and services, demand determinants, major markets, and international trade.

ProcurementIQ

Also from IBISWorld, ProcurementIQ features U.S.-focused procurement research reports covering more than 1,000 indirect products and services, designed to help business professionals make purchasing decisions. Coverage ranges from apparel and personal care products to travel, food, lodging, and entertainment services. Use these reports to evaluate the supply market, identify suppliers, and assess supply chain risk.

ProcurementIQ Telehealth Services report's Supply Chain & Vendors menu

EMIS

EMIS features country and global industry and market research reports, many of which include supply chain analysis. For example, a recent report on the global hand sanitizer market from provider Arizton includes an overview, detailed analysis, disruptions, and risk to the supply chain as well as discussion about ingredient suppliers, accompanied by visuals:

Raw material supply overview from Arizton's global hand sanitizer market research report
Supply chain analysis visual from Arizton's global hand sanitizer market research report

Fitch Solutions

Presented on the FitchConnect platform, this database contains country risk and industry research, Fitch Ratings data and research, fundamental data and analytics, and more. Included are Fitch Ratings articles focused on supply chains in various sectors, Country Operational Risk reports analyzing national and industry supply chain conditions, and special reports.

screenshot of sample headline from Fitch Ratings report regarding supply chain
screenshot of Fitch Solutions November 2020 Special Report titled "The Future of Supply Chains: Regionalisation, Not Globalisation"

Having access to supply chain data and reports makes it easy to become a supply chain expert, but Lippincott Librarians are also available to help whenever needed!

    

What’s it worth to you? Company Valuation Resources

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Contributors:  Cynthia L. Cronin-Kardon and Mia Wells

Valuation is used in business to determine the price participants are willing to pay or receive to buy or sell a business. Needless to say, the seller is looking to make as much profit on the deal as possible while the buyer hopes to pay as little as possible. Various resources can help determine the best price for the transaction. Listed below are some Lippincott Library resources to help students with assignments for a number of Wharton courses including FNCE207/728 – Corporate Valuation (which also has a course guide); FNCE250/750 – Venture Capital & the Finance of Innovation; and FNCE251/751 – Finance of Buyouts & Acquisitions.


 

Comparable Deals
You’ll want to search for precedent transactions in the industry of the company you are valuing. Several sources allow you to search for comps by industry (SIC code, NAICS code, or alphabetically by name).

BizComps is a database of business sale statistics which are based on small business sales transaction data. After searching by SIC or NAICS code, you’ll be presented with a list of recent deals. Select those of interest and you can run a “Transaction Analysis,” which will give summary statistics/multiples on the deals you’ve chosen. Ask to be logged in by a librarian at our Reference Desk.bizcompsborder

 

Business Valuations by Industry is a print source available at Lippincott Library ReferenceBusValIndusMerged Desk (call number HG4028.V3 B78). It includes detailed studies of actual mergers and acquisitions, including deal “tearsheets”. This source is arranged by industry and includes actual transactions from 2007 through 2009. Profiles of buyers are included as well as some some foreign transactions and deal terminations. This is a great resource when you want to profile selected, covered deals.

 

 

 

Betas
Beta measure the volatility of an industry or company within the market as a whole. Betas help to calculate the risk of an investment.

Industry BetasFor industry betas, use the Ibbotson SBBI Valuation Yearbook, a print guide held at our Reference Desk (call number HG4028.V3 S86).

 

companybetaCompany betas are in Bloomberg, available in the Yablon Financial Resources Lab here in Lippincott, or the Forum level of Huntsman Hall. Search for a company of interest and run the Beta function by typing BETA <Go>.

 

 

Best practices
It’s always smart to look to the experts for advice – these sources will give you tips and tricks when performing a valuation for a company within a certain industry.

BusRefGuidemerge
Business Reference Guide is a print source located at Lippincott Library Reference Desk (HD1393.25 .B87). This source provides several types of information which can be used for pricing businesses and franchises.  It is organized by industry and includes industry statistics from IBISWorld, “rules of thumb” by industry analysts, pricing tips, benchmarks, commentary, expenses as a percentage of annual sales and industry costs.

 

 

Standard & Poor’s Net Advantage provides industry surveys. One unique feature of this source the section included for every industry on “How to Analyze a Company in this

S&PIndustry”. To access this, click on Industries, select the survey of interest. Next scroll to the chapter titled, “How to Analyze a(n) […] Company,” which also contains a section on Equity Valuation as well as a glossary of industry terminology.

 

 

 

Company multiples
To track multiples of a company over time, use the sources listed below. This will help you price out the company itself or help you to compare it against a similar firm.

Multiples_VinceS&P Capital IQ provides lots of financial data including multiples. MBAs can access CapIQ via MBA Career Management, while Wharton undergraduates can come to the Yablon Financial Resources Lab and ask to be logged in by a librarian. Search for a public company of interest and look for Financials/Valuation in the left menu. You can change the date range to see multiples over time, as well.

 

BloomFA

Bloomberg is available in the Yablon Financial Resources Lab or the Forum level of Huntsman Hall. Search for a company of interest and run the Financial Analysis function by typing FA <Go>. Look for the Enterprise Value tab.

 

Past M&A deal tearsheets
You may find it helpful to look for past deals to get a sense of how many deals a company has done in the past, what were the specifics of a deal or how active the M&A market is in a certain industry.

Thomson ONE – note that this resource only loads with full functionality when using Internet Explorer. Once inside, scroll over Screening & Analysis, then Deals & League Tables, then M&A to select either a Quick Search or Advanced Search.

Zephyr – select Zephyr Advanced. Pick the variables to define your search. Below is a screenshot of a list of deals. You can click on any of these to get a detailed summary of the deal.Zephyr

This post may have additional information – What’s the Deal? Researching Specific M&A Deals

 

 

 

 

Do You Have This Report? Finding Market and Industry Reports

Doing research on an industry? The Library has several databases that can help. Most Library resources can be accessed by typing the database name into the Findit box at the top of the Library homepage.

Standard&Poors

Net Advantage – Standard & Poors has been providing industry surveys since 1941. Older, print editions are available at Lippincott Library – Peck Collection (call number HG4921 .S672).  Recent years are available electronically. Once you are logged into the database, click on the Industries Tab. While coverage is mostly limited to the U.S. there are some international reports as well. The reports include industry profiles, trends, how the industry operates, key ratios, and how to analyze a company in this industry. Comparative company analysis is also available for industry leaders.

MoodysRatingsResearch_edited

Moody’s Analytics examines industries from the standpoint of the bond markets. Not only does Moody’s provide very detailed reports on their methodologies for rating bonds in a particular industry, it also provides industry outlooks explaining what industry trends will affect the bond markets. Coverage is international in scope. Both types of reports provide deep insight into what is needed for an industry to thrive and what companies in that industry have the strongest potential for investment.Combined_2

Navigate using the Ratings and Research Tab. Next in the middle column, select Research Type and then choose Industry/Sector Research or Methodologies.

Use the filters on the left of the screen to limit to Corporates (under Market Segment) and then select an industry from the Market Segment filter. These are listed in alphabetical order. Continue reading

Increase Your Market Share IQ

The cartoon character Dogbert gives this advice to the Boss:

“It’s easy to create a strategy – Write down everything you do preceded by the phrase Increase our Market Share by.

Creating strategy a la Dogbert is easy. Finding market share data can be tough.

Market share is the percentage of a market, usually defined in units or in revenue, accounted for by a company, a brand, a product, a commodity, or an institution.  The market can be defined geographically, as broadly as the entire world or as narrowly as a zip code. Market share figures are usually calculated for the year, but some industries require more frequent updates. For example, the publication MusicWeek gives weekly market shares by corporate group for artists’ singles and albums. In addition, we may want historical time series or a projection of market share data. The number of potential requests for specific combinations of products, companies, geography and time is almost endless.

Here are some sources for market share data.

Bloomberg

Bloomberg’s industry surveys module is a good source for market share data for more than one hundred industry groups. The screen below shows market share data for North American Passenger Airlines. Use the command BI <GO> to access Bloomberg Industries. Select an industry and then click on “Market Share” from the left-hand menu. Bloomberg is available at the Lippincott Library and Huntsman Hall.

Note that passenger airlines have their own unique market share metric “Revenue Passenger Kilometers”

bloomberg bi north american market share

Market Share Reporter Continue reading

Coding Games – Finding Information for U.S. Micro-Industries

Industries are groups of companies in the same line of business. Points of interest in industry research include financial trends, industry profiles, current and projected environment, major companies and their market share.

NAICS (North American Industrial Classification System) is the standard coding system for defining North American industries. NAICS is a powerful indexing tool used by hundreds of government and commercial databases. It groups natural language industry descriptions into one through six digit hierarchical codes that often allow you to retrieve just the data you want for a specific industry configuration.

But NAICS has its limits. Small or very new industries may not have specific codes. Looking for information about the U.S. Dating Services Industry, for example, will turn up the NAICS code:

81299    “Other Personal Care Services”.

The “9” at the end of the code is a tip-off that this category is for “Not Elsewhere Classified” industries within the larger group of personal care services. In this case, it includes a hodge-podge of services. In addition to dating services, it applies to services including “ear piercing”, “tanning salons”, “tattooing” and “shoe shining”. Continue reading

How Much for that Tummy Tuck? Information on the U.S. Plastic/Cosmetic Surgery Industry

In the U.S., strictly speaking “Plastic Surgery” is surgery performed by Board Certified Plastic Surgeons. Other surgery designed to enhance appearance, for example, a dermatologist removing a facial mole, is described as “Cosmetic Surgery”.

A definition of the industry is provided by IBIS World Industry Reports.

The Industry provides medical techniques to enhance physical appearance for cosmetic or reconstructive purposes ” (IBIS Plastic Surgeons , October 2011).

Two specialty physician professional associations for plastic surgeons that collect data will be helpful in analyzing the industry:

1. The American Society of Plastic Surgeons  – The largest plastic surgery specialty organization. See their procedural statistics page. The Organization reports  performing 13.8 million surgical procedures in 2011.

2. The American Society for Aesthetic Plastic Surgery members are American Board of Plastic Surgery certified physicians. Their Statistics page, provides data on procedure

Continue reading