The Magic of Low Multiple + Growth

So you came out of pocket how much?

60 grand.

It's got all this great ripple effect. If you can buy a business for.

A low multiple, absolutely. I mean that's everything it should be common sense, but I think sometimes we lose sight of that in the modeling and this and that and the hand waving. But if you buy a cash flowing asset for a lower price, it is inherently a better return.

Like if you just step back and think about that. It's, it's so obvious. It helps everything else.

It helps your debt service ratio. It helps everything. Right, Right.

Okay, David, got you for a few more minutes. And we haven't even gotten into operations, so let's turn our attention to that. How has it gone? Gone?

Yeah. In summary, it's gone incredibly well. You know, I think about this as a lot of things I think about probabilistically, but we've winded up on the right side of the distribution here, thankfully. Maybe the far right side.

I don't know. In 19 months of ownership ending March 31 this year, we've grown, adjusted EBITDA 58%. We just closed March at 1.2 million. We've reduced our cash conversion cycle from like 220 days to 150 days.

So we've released tax free cash off the books by being more smart with purchasing and getting inventory values down. And we've got some trajectory to continue that for another year or two as well. It's just, it's just been really, really strong.

David, what you just said there about inventory, better inventory management meant the business was sitting on all this inventory. And if you can tighten up how the business uses its inventory, then you can effectively sell through or kind of liquidate or turn into cash that excess inventory. And that is a one. And that drops to the, that's kind of a one time cash realization out of the business.