ok Veeky Forums im thinking about committing to my first leveraged buyout of a small local company. it brings in 220k a year in gross revenue, nets 80k/yr, has 15k in assets, and owns the real estate that its on.
i found a bank that would be willing to loan me the required amount to buy the ice cream shop from the owner (300k including the real estate) and the bank has agreed to the business and real estate as collateral.
why should i not do this Veeky Forums? it looks like a risk free way to get in the game without having to beg friends and family for money/reinvesting my own funds after slaving away for 12 hours a day building a business.
i start making money from day one, its not owner operated so i can just show up once a month to make sure its going smoothly. the monthly payment to the bank won't be a problem and i can seriously start taking a profit starting from the first month.
why are more people not doing this? am i missing something? i go in on monday to have our lawyers meet, and if everything looks good, were scheduled to close the monday after.