Alternative Assets Due Diligence Service

A new verification & assessment service for websites, micro-SaaS businesses, and other digital assets

RED FLAG REPORT

$ 1000
  • Analysis period
  • 1 year
  • Report Size
  • 11-14 pages

Summary:

This report identifies high-level risks and opportunities, with the presentation of limited financial and traffic information.

The Report is based on last 12 months. Verification of provided data to source documents (invoices, bank statements, etc.) are not performed.

The asking price is compared against benchmarks and similar businesses.

Download Sample Red Flag Report ↓

STANDARD REPORT

$ 1500
  • Analysis period
  • 2 years
  • Report Size
  • 21-25 pages

Summary:

This report identifies detailed risks and high-level opportunities with the presentation of normal financial and traffic information.

The Report is based on data over the last 24 months (subject to data availability). Information provided by the Seller will be checked against source documents (invoices, bank statements, etc.) This includes verification of selected sales and cost-related transactions for one month (approximately 5 sales and 5 cost transactions). The asking price is compared against benchmarks and similar businesses.

Download Sample Standard Report ↓

ENHANCED REPORT

$ 2000
  • Analysis period
  • 3 years
  • Report Size
  • 26-35 pages

Summary:

This report identifies detailed risks and opportunities with the presentation of enhanced financial and traffic information.

The Report is based on data for the last 36 months (subject to data availability). Information provided by the Seller is checked with enhanced coverage against source documents (invoices, bank statements, etc.) This includes verification of selected sales and cost-related transactions for three months (approximately 10 sales and 10 cost transactions). The asking is compared against benchmarks and similar businesses, and includes an analysis of financial ratios (e.g. RPM, Monetization Efficiency). The Report will also include an overview of the industry and key trends.

Download Sample Enhanced Report 

Stefan von Imhof | Alternative Assets

Who will be doing your due diligence?

Meet Stefan von Imhof. Stefan is the Head of Product at Flippa.com and created Flippa’s Due Diligence program. He has a wealth of experience analyzing, buying, and selling websites & online businesses.

What does the due diligence report include?

Seller analysis

  Red FlagStandardEnhanced
Personal detailsVerification of the seller’s telephone number, government-issued ID, and social media accounts.
Duplicate accountsIdentification of any duplicate or alternate accounts.
Competing Business InterestsVerification if the Seller has bought & sold any business in the past and if he / she currently has other businesses.
Critical human resourcesIdentification of owners, employees critical to business operations.

Financial analysis

  Red FlagStandardEnhanced
Revenue verification and analysisPresentation of revenue by sources (website being sold, Amazon account, Social Media Accounts, etc).
Verification of revenue streams to source documents, review payments and confirm the flow of money from end to end.*
Verification if payments were made from personal accounts to boost profits.
Analysis of revenue and margin by product, client, geography, if respective data are available.**
Analysis of seasonality, development, and recurrence of sales over the analysed period.
Expenses verification and analysisUncover hidden costs, including those which may be deliberately masked, such as staff, marketing expenses or work done by the owners, which is not included in costs (e.g. temporarily substitution of regular staff by owners, etc.).
Verification of expenses back to the source documents and bookkeeping records. Confirm the flow of money from the invoice back to the original bank or credit card transactions.*
Breakdown of expenses by type.
Analysis of seasonality, development, and recurrence of expenses over the analysed period.
Inventory analysisAnalysis of inventory structure, slow moving or obsolete inventory.
Identification of inventory depreciation and its impact on future earnings.
Profit risk assessmentVerification of business continuity and sustainability of profit level.
Insights & benchmarksCheck of business performance against similar businesses in the industry, if possible.
Tax returnsIf available, we verify tax returns for the past 12 months.

Traffic sources

Red Flag Standard Enhanced
Traffic sources Verification of traffic sources.
Verification of the quality, sustainability, and dependence the business has on each traffic source.
Direct traffic Check of the bot traffic.
Referral traffic
  • Top 10 indexed pages
  • Most Prominent (Top 10 by number of links)
  • Most Recent (Top 10 by First Seen Date)
Organic traffic
  • Number of Organic Keywords
  • Top 20 Keywords (sorted by Traffic)
  • Top 10 Pages with Number of Keywords, Traffic, & Traffic Percentage
Paid traffic
  • Number of Google Ad Keywords
  • Google Ad Traffic
Behavior
  • Visits/month
  • Unique Visitors/month
  • Pages per Visit
  • Visit Duration
  • Bounce rate
Backlink analysis
  • Number of Backlinks.
  • Number of Referring Domains.
Geography and demographics Identification of countries/regions where the traffic is coming from.
Identification of the typical visitor persona, if possible.
Blacklists and penalties Verification of the site blacklists or penalties.*
Insights & benchmarks Comparison of the site’s traffic against similar sites in the industry.
Traffic risk assessment Verification the risk of the site losing traffic from each source.

Sales and marketing Analysis

Red Flag Standard Enhanced
ROI by channel Identification of sales & marketing channels which brings the majority of sales. Identification of marketing channels which are working, and which ones are not working.
Changes in ROI over time. Assessment of efficiency of marketing costs over time.
CAC Identification of the cost to acquire each new customer (CAC).
Average order value Average order value its development over time.
Growth opportunities Identification of the biggest unexplored or under-explored growth channels.
Insights & benchmarks Comparison of site’s ad spend, profit margin, ROI, and monetization efficiency against similar sites in the industry, if possible.
Sales & marketing risk assessment Verification of dependency of the business on the effectiveness of advertising in each sales/marketing channel and identification of related risks.

Operations & Legal Analysis

Red Flag Standard Enhanced
Time commitment Comments on the minimum amount of time it takes to run the business, and the amount of time it takes to grow the business. Areas of the business which were ignored or glossed over by the owner.
Skills required Identification of the typical functions and skills required to operate the business.
Legal analysis Licenses needed to operate the business.
Identification of current or past lawsuits, patent infringements, or other hidden legal issues based on discussion with the owner.
Business Rating Identification of the typical functions and skills required to operate the business.
Violations and warnings* Identification of any past or current policy violations or warnings the seller has not disclosed. Ensure the Seller is complying with Facebook/Google/Amazon policies.
Mailing list validation Verification of email addresses in the customer mailing list.
Geographic limitations for new owner Identification of potential issues if the business were to be run from another location.
Supplier contract validation Validate contracts & pricing sheets with suppliers are up-to-date.
Asset transfer risk Identify potential issues with transferability/migration of business operations.
Operations & legal risk assessment Identify critical operational & legal risks that could harm the business in the future based on the discussion with the Seller.

Industry & Competition Analysis

Red Flag Standard Enhanced
SWOT analysis A breakdown of competitive strengths, weaknesses, opportunities, and threats. High level comparison of the business against key competitors.
Top competitors Identification of top competitors.
Industry analysis
  • Identification of key trends across the industry.
  • High-level analysis of industry development and historical trends.
  • Identification of the Business positioning in the industry.
Pricing Analysis Fair market value assessment. Comparison of the ask price to similar businesses based on net profit multiple.
Comparison of the additional ratios (RPM, Monetization Efficiency, etc) of the Business to the market for better investment decision.

Recommendations & Next Steps

Red Flag Standard Enhanced
Recommendations & Next Steps Summary of recommendations, list of additional information needed and list of issues to be resolved with the Seller before agreeing to purchase.

Ready to get started?

RED FLAG REPORT

$ 1000
  • Analysis period
  • 1 year
  • Report Size
  • 11-14 pages

STANDARD REPORT

$ 1500
  • Analysis period
  • 2 years
  • Report Size
  • 21-25 pages

ENHANCED REPORT

$ 2000
  • Analysis period
  • 3 years
  • Report Size
  • 26-35 pages