Single Employee MSP

I am new to the search world. Came across an MSP listing with one employee who is the owner/founder as well. Its doing around 400K in recurring revenue and 120K in SDE. I see this in two ways,

1. Me replacing the owner by getting up to speed on required technical skills and then hire someone down the road to be hands on so I can focus on growing the business.
2. Hire someone right away and I can focus on growing the business.

I would like to hear your thoughts on this deal, approach and risks? Appreciate it.