Finished a podcast with a traditional search fund operator who said that during the first year post-close (the seller stayed on), he and his partner did not do a thing...
He said they were like journalists, just taking notes, studying, learning the industry, learning the business.
When asked why and how they were able to do that?
- Buy well.
- Buy a good company well (heavily cash flow generative, with $4-5M per year. No capex, negative working capital, collect money upfront, pay it out later).