“Know this before you buy”
Something you must have clear when buying your first business.
Who is going to run it? If the answer to that question is you, then you need to be honest and ask yourself why you are qualified to run it. Have you run a company this big or bigger? Do you have industry experience? Would the current owner hire you as CEO? It is tempting to look at the old guy handing you the keys to his business and assume he is past his prime, not up to the modern way of doing things, etc. But that OG Operator selling you his business has run it through more economic cycles and shitstorms than you can imagine. Are you up to that job?
If the answer is you are going to delegate management, you need to ask the same questions about this replacement candidate. Are they qualified? Are they an internal promotion or an outsider? If they are an internal promotion, what makes you sure they can do the job?
Our first three acquisitions were led by internal promotions. We took General Managers and made them CEOs. Want to know what happened? We had a bunch of people with CEO business cards, making CEO salaries, and doing a General Manager job. We would have been better off leaving them as General Managers and eventually finding a true CEO.
One last thing, if you are going to delegate management, I would not quit my day job. You will be paying the manager’s salary and possibly interest and amortization of debt. Be careful budgeting in a personal salary as well until you have a good grip on the cash flow cycle of the business you are buying.