Worried about buying a website and getting blind sided or short changed? Many new buyers worry about getting taken that something might be fudged in the numbers.
Flippa has announced new due diligence packages. The packages come in three different flavors.
Red Flag Report
US$1,000
Analysis period
1 year
Report Size
11-14 pages
Recommended for price range
$0 – $ 30,000
The Red Flag Report focuses on identification of high-level risks and
opportunities, with presentation of limited financial and traffic information.
This report goes back 12 months. While the asking price for the business will be compared with prices for similar businesses (based on net profit multiple) verification of source financial documents (invoices, bank statements, etc.) is not performed.
Standard Report
US$1,500
Analysis period
2 years
Report Size
21-25 pages
Recommended for price range
$30,000 – $ 200,000
The Standard Report is nearly identical to our original due diligence report. It focuses on detailed risks opportunities, with presentation of enhanced financial and traffic information.
This report goes back 24 months. Information provided by the Seller is checked with limited coverage against source documents (invoices, bank statements, etc.). The asking price will be compared with
prices for similar businesses based on net profit multiple.
Enhanced Report
US$2,000
Analysis period
3 years
Report Size
26-35 pages
Recommended for price range
$200,000+
The Enhanced Report is focused on identification of detailed risks and
opportunities with presentation of enhanced financial and traffic information.
This report goes back 36 months. Information provided by
the seller is checked with enhanced coverage against source documents
(invoices, bank statements, etc.).
The asking price is compared with prices for similar businesses based on net profit multiple, and compared to other business based on other relevant ratios (e.g. RPM, Monetization Efficiency, etc.)
This report also includes an overview of the industry and key trends.
Whether or not these prices are worth investing is up to each individual buyer. I know I have spoken to some apprehensive about buying an online business because they are not sure of everything to look out for.
This is not a recommendation to purchase these services it’s pointed out for information only. TLDinvestors.com has no business relationship of any kind with Flippa.