Is Finance or Operations a better background for a successful Searchfund?

I would argue that since it is easier to hire outside firms to help with marketing and finance than with operations and sales there is some added inherent value to the latter two, especially sales. There is also a big difference in what type of financial experience someone has. A PE analyst who was on site visits and meeting with employees at acquired companies will be very different than one who spent all their time in excel sheets. People skills will be more important than number skills in virtually every scenario.

Speaking from my experience on the lending side I can say operational experience seems to provide more value to the companies my clients have acquired versus just finance experience. Don't get me wrong, understanding the operational numbers is important, but it is not terribly hard to learn and there are plenty of resource, CFO's, financial consultants, accounting firms, etc. that can help provide this support. Being able to understand the intricacies of operating the business from production, sales, marketing, customer relations, etc. is the most important thing for an owner to have to operate a business. Especially if they are replacing a seller who is providing this level of experience. Sitting behind a desk reviewing financial data only provides so much support.

I can tell you lenders look for buyers with either direct industry experience or related operating experience. Not that lenders do not value individuals with finance experience, but they prefer operators. I hope this helps. If you have additional questions you can reach me at --@----.com