Market Research

How to Find Business Data for Investment Due Diligence

Investing in a business or franchise? Here is how to verify market claims with independent data.

·6 min read

Why Independent Data Matters

The seller will paint the rosiest picture. Independent business data lets you verify market size, competition, and growth claims.

What to Verify

1. Stated market size — count competitors yourself.

2. Quality position — compare ratings to competitors.

3. Geographic competition — map all rivals.

4. Growth claims — check new openings vs closures.

5. Customer satisfaction — read reviews of similar businesses.

Red Flags

Seller claims "no real competition" but AI search returns 50+ similar businesses. Seller claims top-rated but ratings don't support. Seller claims market is growing but no new entrants in 2 years.

Sample DD Workflow

Buying a coffee shop in Austin. AI search shows 200+ coffee shops in city, 30+ in target neighbourhood. Average rating 4.3. Target shop has 4.1. Below average — adjust valuation accordingly.

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