Question 1

What is a mini due diligence?

Accepted Answer

It is a focused review of the essential points of an online business before buying it: revenue, profit, traffic, operations, assets, dependencies, risks and transferability.

Question 2

What is the difference between mini due diligence and full due diligence?

Accepted Answer

Mini due diligence validates the essential points before buying. Full due diligence goes deeper into financial, legal, technical, and operational areas, depending on the size of the transaction. In-depth due diligence requires technical knowledge in each area of analysis: financial, employment, tax, and so on. Therefore, it is essential to seek support from a specialist firm in each relevant area.

Question 3

Is it enough to look at revenue screenshots?

Accepted Answer

No. Screenshots can help, but they should be checked against source platforms, official exports, or supervised access when the progress of the transaction justifies it. In due diligence, it is essential to verify the data against official tax records and accounting books.

Question 4

What happens if the seller does not have all the documentation?

Accepted Answer

The smaller the business, the more likely this is to happen. It does not always mean the transaction should be discarded, but it does increase the risk. You should ask for clarifications, adjust the terms, or reflect that uncertainty in the price.

Question 5

What is the most common mistake when reviewing profit?

Accepted Answer

Not including all real costs. Advertising, tools, commissions, freelancers, logistics, support, hosting and maintenance can change the real profitability significantly.

Question 6

What risks should stop the purchase?

Accepted Answer

Unverifiable revenue, inflated profit, legal issues, non-transferable assets, unstable traffic, unmitigated critical dependency, or lack of clarity about what is being sold. Ultimately, the documentation provided by the seller of an online business should be easy to verify.

Question 7

When is it advisable to seek professional help?

Accepted Answer

Seeking help from a professional is always a wise decision. However, it is true that this involves a financial outlay which, in some cases, may not justify the purchase of the business, especially for lower-value deals. Therefore, we usually suggest seeking professional help when the price is significant, the business has technical or legal complexity, the data is unclear, or you do not have enough experience to interpret the risks.

Mini Due Diligence Guide to Buy an Online Business

Frequently asked questions