Lab42 Research

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How Investment Firms use Market Research

There are countless reasons to conduct market research studies. Many companies commission market research so they can better understand their customers, project how a new product will be received, or assess the impact of their current marketing.  In addition, we have found other companies who benefit from the same types of research - though not about their own products and services.

We have completed many studies for investment firms that want to gain insight into B2C companies.  Analysts and investors are finding it valuable to dig deeper into the companies they serve or industries they follow – and Lab42 research helps them do just that.The most straight-forward projects are focused on gathering data on public companies at a level of detail that the companies do not publicly release.

We survey actual consumers of a company’s products or services and with that data, our investor and analyst client are able to see the more granular elements the underlie the company’s less detailed public reporting.  They use this data to build their own models of the target company’s financial performance and identify areas where public disclosures can be misleading.Other clients have used Lab42 research to track public companies and look for early indicators of shifting businesses or potential earnings surprises, like changes in frequency of purchase or average transaction size.  

While markets try to anticipate future “news”, often the “news” is really the reporting of metrics of events that occurred in the prior quarter. Lab42 investment industry clients that track a certain company or industry can anticipate the “news” with the actual consumer behavior data that we gather for them.

And finally, Lab42 clients commission research on private companies that do not have any public reporting requirements.  Private equity investors seek to corroborate the information they are receiving from companies they are considering for investment, or look to better understand an emerging industry that is dominated by pre-public competitors. Our experience with primary work for B2C companies in the US and globally helps us guide our investment industry clients to see what data is most powerful and most accurately available, so they can gain valuable insights into the companies and industries they track.