The biggest thing that owners and buyers have to make sure of BEFORE making an acquisition is that free cash flow needs to cover debt service.
All expenses must be factored in — including management and more!
Don’t buy an asset assuming you’re going to work within it.
If you do, great! You save that money. But don’t purchase with the assumption that it’s a good deal because you’re going to manage and do some of the operating activities yourself.
Only buy what can stand on its own two feet.