Ellen Harpel presented on using research tools and methods to assess incentive applicants. She discussed how conducting background research on companies can help economic developers 1) reduce risk by identifying problematic companies early, 2) level the playing field by obtaining comparable information to what companies know about the location, and 3) promote transparency. Some key data sources discussed included company websites, SEC filings, press reports, and business directories. The type of company - public, private, small, or international - impacts the level and types of information available.

1. Economic Development + Market Intelligence
May 2013
Research Tools and
Methods to Assess
Incentive Applicants
Using Research to Improve Incentive Decisions
May 23, 2013
C2ER Annual Conference - Nashville, TN
Ellen Harpel, President
Business Development Advisors

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Introduction
 Business Development Advisors is an economic development and market
intelligence consulting firm
− Works with economic development leaders at the local, state and national levels to
increase business investment and job growth in their communities
− Provides market intelligence to organizations seeking insights on industries, market
trends, individual companies and locations
 Ellen Harpel, President
− Founded BDA in 1999
− Research interests: Incentives, business outreach methodologies, role of service sectors
in regional economies
 Smart Incentives
− Launched in 2013
− Provides business intelligence to enable better decision-making and accountability in
incentive programs

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BDA’s Principles and Framework for Incentives

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The focus for today’s panel:
4

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Using Company Information for Economic Development
Prequalify leads
 Identify the companies most likely to make a facility change in the near-term
 Select the companies that provide the best match with your community
Make your business outreach effort more effective
 Understand the company-specific factors that will drive a relocation or
expansion decision
 Tailor your marketing message
Conduct due diligence on companies seeking incentives

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Reasons to Conduct Background Research
Reduce risk
 Identify bad actors early
 Avoid surprises
Level the playing field
 Companies study your community – they know a lot about you; what do you
know about them?
 Direct substantial resources to the negotiation
 Less reactive; more assertive
Promote transparency
 Deals increasingly need to be documented and defensible
 Be prepared to respond to questions from media and elected officials

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Gathering In-Depth Information on Companies –
Data to Obtain
For Outreach
 Products and/or functions
 Locations of existing operations
 Major customers
 Growth projections and strategies
 Restructuring and management changes
 Executives
For Due Diligence, also include
 Ownership details
 Credit rating (Experian or D&B)
 Financial structure
 Past incentives negotiations

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Major Data Sources and Their Uses
Company websites
SEC Filings - EDGAR
 10K & 10Q
 Prospectus
Press
 OneSource
 Factiva
 Lexis/Nexis
Business directories
 Hoovers
 Reference USA
 OneSource

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Variations (1)
Public Companies
 Plentiful information
 Challenge is finding the specific information you need
 Financial statements – income statement, balance sheet, cash flow
 Also see quarterly earnings statements, analyst reports, transcripts of analyst
calls, investor relations, corporate presentations
Private Companies
 May be little publicly available information, especially on finances
 Press – especially local newspapers and business journals – will often provide
key data items
 State-level sources
 ReferenceUSA

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Variations (2)
Small Businesses
 Often not even listed in business directories
 State corporation commissions may have some information
 Try searching executive names
 LinkedIn
International Firms
 Some business directories have international listings or modules
 Canada – SEDAR, Industry Canada
 Euromonitor/Passport Global Market Information Database
 Bureau of Industry and Security “Lists to Check”:
http://www.bis.doc.gov/complianceandenforcement/liststocheck.htm
 BDA experience for other countries – find resources on case by case basis

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Contact
Ellen Harpel
571-212-3397
eharpel@businessdevelopmentadvisors.com
www.businessdevelopmentadvisors.com
www.linkedin.com/pub/ellen-harpel/a/448/266
ellen@smartincentives.org
www.smartincentives.org
Twitter @SmartIncentives