Is Your Target Acquisition Highly Resistant & Difficult to Disrupt?
When I was searching for a business to acquire, I wasn’t just looking at revenue, EBITDA, or cash flow.
I was asking a different question:
How durable is this business over the next 10–20 years?
Can it withstand…
Technology & Digital Disruption
• ✓ Artificial Intelligence (AI)
• ✓ Automation
• ✓ Rapid technological change
• ✓ Search engine algorithm changes
• ✓ Social media algorithm changes
• ✓ Dependence on third-party platforms you don’t control
Global Competition
• ✓ Offshoring
• ✓ Overseas manufacturing
• ✓ Low-cost foreign competition
• ✓ Amazon and other dominant platforms
Economic & Market Pressures
• ✓ Recessions
• ✓ Tariffs
• ✓ Rising fuel prices
• ✓ Commodity inflation
• ✓ Changing political and regulatory climates
• ✓ Margin compression
• ✓ Competitors willing to compete on price
Industry Risks
• ✓ Extremely low barriers to entry
• ✓ Commoditization
• ✓ Fraudulent bad actors siding the industry to scam, spoof, and steal
• ✓ New entrants flooding the market
Is it…
• ✓ Essential?
• ✓ In constant demand?
• ✓ Built around real complexity?
• ✓ Protected by a defensible moat?
• ✓ Difficult to replicate?
• ✓ More than a commodity?
• ✓ Operating in a blue-ocean market instead of a red ocean?
• ✓ Serving high-value, high-trust customers?
• ✓ Able to command premium pricing because of expertise rather than being the lowest bidder?
These are the types of questions I asked while searching for a business, and they played a significant role in why I ultimately acquired Tommy Pollina Landscape Co. Inc .
Since then, I’ve organized those ideas into a 27-Point Business Durability Checklist to help entrepreneurs, searchers, investors, and franchise buyers evaluate businesses beyond the financial statements.
If you’re evaluating a business or franchise, I think you’ll find it useful.
Take the assessment redacted