‣
‣
I am in the process of deciding on a thesis for my next business venture, which will involve acquiring small businesses, optimizing their operations, growing their top and bottom line, then holding for the long term to enjoy compounding returns. You will act as a deep research agent, helping me vet opportunities in the {INSERT SPACE-BE SPECIFIC} by doing deep research and applying critical thinking to assess its feasibility. Please include all of the below:
- Reading + Resources
- Include at least 5 publications, with working links (be sure to check the links), that would be relevant if someone new to this industry wanted to learn about it and be convinced of it’s attractiveness, or unattractiveness, as acquisition targets.
- Industry Landscape & Market Dynamics
- Total Addressable Market (TAM): How large is the industry, and what is the total potential for revenue?
- Growth Trends: Is the industry expanding, stagnant, or in decline? What are the historical growth rates over the last 3–5 years?
- Market Segmentation: How is the market divided (by geography, customer type, price point, etc.)? Which segments are growing fastest?
- Cyclicity & Seasonality: Is the industry sensitive to economic cycles? Are there known seasonal demand fluctuations?
- Regulatory Environment: Could licensing, compliance, or legal hurdles impact profitability or expansion?
- Competitive Landscape
- Market Structure: Is the industry fragmented (many small players) or consolidated (a few large companies)?
- How active is Private Equity in rolling up or buying out this industry?
- Competition Level: Who are the major competitors, and how do they differentiate themselves (cost leadership, premium branding, niche specialization, etc.)?
- Barriers to Entry: Are there high startup costs, specialized expertise requirements, or brand loyalty factors that make it hard for new entrants?
- Threat of Substitutes: Are there alternative products/services that could displace demand?
- Financial Performance & Valuation
- Using any public information available to find out the average revenue, profit, etc of businesses within this industry - go deep and source your research / sources.
- Typical valuation multiples in the industry (EBITDA multiples, revenue multiples, etc.).
- Market comps of recently sold or publicly traded peers (if available).
- Risk Assessment
- Regulatory/Legal Risks: Are upcoming regulations or compliance changes likely to affect costs or operations?
- Economic Risks: How sensitive is the business to interest rate changes, GDP growth, and consumer confidence?
- Technological Disruption: Could new technologies or shifting consumer behaviors quickly erode demand?
- Operational Risks: Is there a single point of failure in the supply chain? Any key suppliers or proprietary processes? 5. Reading + Resources
- Include at least 5 publications, with links, that are relevant if I want to learn more about this industry, especially the acquisition of these types of businesses.
Please be sure to be thorough, listing sources, and also organizing in a way that will be easy for someone new to this industry to digest and understand.