Channel check

In financial analysis, a channel check is third-party research on a company's business based on collecting information from the distribution channels of the company. It may be conducted in order to value the company, to perform due diligence in various contexts, and the like. Industries where channel checks are more often conducted include retail, technology, commodities, etc.

Channel checks can give insights complementary to balance sheet analysis, such as distributor and retailer attitudes towards a product and its competitors, seasonal and geographic variation, inventory levels (notably channel stuffing), and so on.

An example of a channel check would be speaking to a grocery store manager to learn about trends in orange juice sales.

External links

• http://www.investopedia.com/terms/c/channelcheck.asp