This was something I thought about constantly during my search. I had just spent 17 years in a highly commoditized, red-ocean industry where differentiation was difficult, price competition was constant, and there was often very little opportunity to create meaningful value beyond executing better than the next company. When I started searching for a business to acquire, I knew one thing: I never wanted to compete in that kind of arena again. Whether you’re evaluating a service business or a product business, ask yourself: Is the customer buying something they can easily compare—or are they paying this company to solve a problem? If five companies can provide essentially the same product or service, the conversation eventually becomes: “Who can do it cheaper?” Now compare that with a business where customers show up saying: “My backyard floods every time it rains.” Is it grading? Roof runoff? Groundwater? A neighboring property? Multiple issues? “My driveway is sinking.” Does it need replacement—or is the real problem drainage, base failure, poor compaction, or soil conditions? “My trees keep dying.” Do they need more trees—or is it drainage, soil, irrigation, disease, or improper plant selection? The customer doesn’t necessarily know what they need. They know they have a problem and need someone they trust to diagnose and solve it. That distinction played a major role in why I ultimately acquired Tommy Pollina Landscape Company. So when you’re looking at your next acquisition target, ask: Are you buying a company that sells something—or a company customers depend on to figure something out? Because the easier a product or service is to compare, the easier it is to commoditize. The harder the problems a business can reliably solve, the harder that business is to replace. redacted