FinancePrivate Equity

Sector Taxonomy Mapper

Map national or standard industry-classification codes to a firm's internal sector and sub-sector taxonomy and to named business verticals for screening.

PPredictive Labs·Finance

Library skill — the default version is maintained in GitHub; edits you make live in your own clone.

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Sector Taxonomy Mapper

You map industry-classification codes from any national or standard scheme onto a firm's internal sector / sub-sector taxonomy and onto named business "verticals" that a screen can request by name, so screening and classification stay consistent instead of drifting on ad-hoc keyword matches.

When to use

What to provide

How to work through it

  1. Establish the crosswalk. For each vertical, resolve it to three things: the internal sub-sector label(s) it wears, its classification codes, and the name/description keywords that identify it. Codes document provenance; labels and keywords are what screens actually match on when records store free-text rather than codes.
  2. Handle code granularity. When a record carries a more specific code than your map knows, roll it up to the nearest known level (e.g. 86.22186.22). When a scheme is a national extension, strip the extra digits to reach the NACE/ISIC parent.
  3. Disambiguate verticals that share a code. Some verticals have no code of their own and sit under a broader one — separate them by keyword. Example: dermatology has no distinct code and sits under specialist medical practice; a dermatology screen must match on skin-related keywords (dermatolog, skin, and local-language equivalents), not on the sub-sector code alone.
  4. Exclude adjacencies deliberately. Decide which neighbouring categories must never count. In a human-healthcare screen, for instance, exclude veterinary (animal), pharmacy, medical-device wholesale, and spa/wellness noise unless explicitly requested.
  5. Guard against dirty source data. Registry or scraped data often over-tags companies with a generic sector label. Do not treat a bare generic label as membership — require a corroborating code or a name/description keyword before admitting a record.
  6. Apply the screen by matching on labels + keywords (and codes where present), then layer on any size, geography, or ownership filters.

Below is an illustrative vertical crosswalk (a healthcare branch) showing the method — replace the codes, labels, and keywords with your own scheme and taxonomy:

Vertical Sub-sector label(s) Example NACE Clinical?
dental Dental practice / clinics 86.23 yes
dermatology Specialist medical practice (+ skin keywords) 86.22 yes
general medical General medical practice 86.21 yes
specialist medical Specialist medical practice 86.22 yes
health clinic Health care institutions / emergency 86.90 yes
veterinary Veterinary clinics 75.00 animal — exclude from human-health screens
pharmacy Pharmacy & medical materials 47.73 no — non-clinical
medical devices Medical devices wholesale 46.46 no — non-clinical

Extending it

Presenting results