What is due diligence when you are selling your business?


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I am looking to sell a property of mine on Flippa and all potential buyers mention they would need to do due diligence.

What things does someone acquiring your company check? Is there a list of commonly checked items? Would they need to verify revenue by looking at my bank account?

Acquisition Due Diligence Flippa

asked Feb 28 '14 at 10:56
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Brandee Dickson
10 points

1 Answer


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Check out Martin Zwilling's Startup Professional blog. He has a few posts that deal with due diligence.

For selling a website on Flippa, the top things a prospective buyer would want to verify is traffic and revenue. That will likely involve adding them to your google analytics as a read-only user and showing them statements of revenue generated.

Here are some questions from one of Martin's post which apply to more traditional acquisitions:

  • What is your burn rate and runway today?
  • How much "skin" is already in the game?
  • What’s the total history of this company?
  • How well do the founders get along with each other, and with the team?
  • What’s in this deal for me?
  • What traction can be measured today?
  • Who do you have as outside board members?
  • Who is a real customer that I can talk to?
  • How solid is the intellectual property?
answered Feb 28 '14 at 14:55
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Patricia Wright
663 points

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Acquisition Due Diligence Flippa