Doing proper Due Diligence on a web site can be daunting. Don’t despair! The more you do this, the quicker and better you get at it. There are tools all over the internet that can drill  into where traffic comes from and what the site has been up to.

The main question we are trying to ask is: “Is the seller properly representing this business, and is this something I want to own and manage”. There are always going to be problems, you have to determine if your level of problem-solving and knowledge matches up with the business you are looking at. If not, can you easily outsource those missing parts? Many times a seller has custom programmed a business from scratch, and they say it’s easily taken over by someone else. That is rarely true, many are not good at documentation, so taking over someone else’s code is time consuming and expensive.

-We are not licensed attorneys, so please do not take this as Legal advice. Always consult council before signing anything you are not familiar with and do not completely understand.

An NDA is abbreviated as a Non Disclosure Agreement. They are typically sent by the seller (or seller’s broker) to a prospective buyer.

The idea is to give each party some comfort (these are always weighed more to the sellers interests, however). If the deal falls through, or never goes further, the seller needs some “insurance” that the buyer isn’t going to steal the information and duplicate the business (or improve their own similar business).