Due Diligence is Necessary When You Buy a Website
Reprinted with permission of VotanWeb.com
According to industry statistics, nine out of ten people who begin the search to buy a website never complete a transaction. While there are many reasons for this dismal figure, a lot has to do with the inability of people to "pull the trigger". This gun-shy reaction is due to uncertainty: if you have not gathered the right information or failed to investigate the website thoroughly you will not be 100% certain of what to do.
Due diligence is probably the most critical stage in the website buying process. Many prospective buyers incorrectly identify this period as strictly a financial review. However, an effective due diligence goes far beyond the numbers. Due diligence is the complete investigation and review of a website.
One of the keys to buying a good website comes from your ability to learn the intimate details of it. It is imperative that you identify the strengths, weaknesses, growth opportunities and areas of concern with each website. If you don't do a flawless job of gathering information, you will not be able to pull the trigger and complete the transaction since you'll be uncertain about too many components of the website.
The investigation process must begin the moment a website becomes of interest. Your goal is to be certain that you uncover everything about any website before you buy it. You don't have to communicate with the seller for your research to begin. The Internet is an incredible tool that will allow you to investigate the website, the industry, the competition, the marketing, the suppliers, and on and on.
The importance of beginning your investigation early cannot be emphasized strongly enough. This way, you'll position yourself to ask the seller the right questions. Once you progress to the stage of an accepted offer, you will commence the financial due diligence. This period usually lasts 10-30 days. This is the time when you'll have access to all of the website’s books and records.
Once you begin looking at a particular website, you'll find a thousand things crossing your mind regarding the acquisition. Keep a notepad handy at all times and log your thoughts. Don't trust your memory; these little things are the ones that can and will come back to haunt you down the road. Begin to put together your checklist of what you need to investigate and how you're going to do it along with the materials you require from the seller to accomplish it.
Yeats, W.B. The Collected Poems of W.B. Yeats, 2nd revised ed. Ed. Richard J. Finneran.
Due diligence basically means evaluating company decisions prior to finalization. This focuses on numerous areas including financial, legal, and regulatory, accounting and tax. In summary, due diligence is fixated on making numbers work. When this stage is cleared after thorough observation then partners move onto the next stage. In Telstra a great aspect of time was spent on this stage, everything was double checked before moving onto the subsequent step. It is evident that Telstra has been successful in making numbers work.
Storey, Mark. The Problem of Poetry in the Romantic Period. New York: St. Martin's Press, Inc, 2000.
Finneran, Richard, ed. The Collected Works of W.B. Yeats. 2nd ed. New York: Scribner, 1997.
Increasing the minimum wage has always been a very controversial topic because many people are unsure of how it will effect society. One of the main concerns is its effect on jobs. According to most economists there is no “free lunch” meaning something has to be done to pay for the cost of increasing wages (Wilson). Most companies will not just take the hit and accept reduced profits. Instead companies will find other ways to makeup for their loss like decreasing the amount of employees. With information limited to two opposing opinionated articles, a novice can conjecture increasing minimum wage does not significantly decrease the amount of jobs.
And so it is with the characters in Eugene O'Neill's Long Day's Journey into Night. Time is little more than a game in which they move as checkers, if not pawns. In their repetitions and habits, the family seems to be stepping towards the same river again and again; but each time, the step falls into a different stream. In its seeming droning inaction, the play moves sharply and excruciatingly through eternities.
Retail is one of the more visible market sectors on the Web. In retail, merchants sell products and services directly to a buyer. E-retail, also called e-tail, occurs when retailers use the Web to sell their products and services (Sanchez 16). E-retailers constantly challenge the old ways of conducting business as they bring new products and services to market. All e-retailers, however, operate in a similar manner.
Our reading this week teaches us that there are three steps that should be performed prior to making your purchase. Siegel and Yachts cover that you must first identify the product, this can be done by comparing attributes between the items that you are looking at. These attributes can vary on importance depending on the product itself. If it is something simple as purchasing toilet paper, the typical key attribute is with how soft it is, moving to something more complex as a television, you will have a great number of features such as sound quality, audio, or picture clarity to name a few. The more attributes the Item have, the possible harder it is to select. We later learn the next step is to identify the market, in this step Siegel and Yachts explain that you will compare price, delivery (return), and convenience. With me, online shopping is becoming more and more important, I often purchase items through Amazon.com due to having a membership. When I purchased a new TV, once I decided which model, this step became key on how I purchased it, my first action was to look on Amazon, which they had it with free shipping. I was able to find the TV cheaper at a different location, but the shipping the other site had caused it over all to be more. So with Amazon’s price match policy and free shipping, I went with them. The last step that is covered is identify the financing, with this, you are to figure out how you will pay for it, typically will you have the cash up front or will you need to put it up on credit.
@“Arts education opens doors that help children pass from school in to the world around them – a world of work, culture, intellectual activity, and human involvement. The future of our nation depends on providing our children with a complete education that includes the arts.” –Gerald Ford, former President of the United States of America
Keats, John. “La Belle Dame sans Merci: A Ballad.” The Norton Anthology of English Literature Seventh Edition, Volume 2. Ed. M.H. Abrams and Stephen Greenblatt. New York: W.W. Norton & Company, Inc., 2000. 845-846.
1. Bogan, L., 1938, “William Butler Yeats”, The Atlantic Monthly, May 1938, accessed 8 June 2012, http://www.theatlantic.com/magazine/archive/1938/05/william-butler-yeats/4672/
Yeats, William Butler. “Leda and the Swan.” The Norton Anthology of Modern and Contemporary poetry. 3rd ed. Vol. 1. Eds. Jahan Ramazani, Richard Ellmann, & Robert O’Clair. New York, NY: Norton, 2003.
The fourth stage is due diligence, which is a thorough in depth investigation of the various aspects of the target company.
Due diligence is used as a confirmation of all material facts. Due diligence refers to the care a person takes in getting into an agreement with a third party. Decision to purchase or not to purchase an asset is usually dependent on results of the due diligence analysis. This includes the of reviewing all financial records and also anything else deemed material to the sale. Sellers can also perform a due diligence analysis on the buyer. Items that may be considered are the buyer's ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed. Due diligence is a way of preventing unnecessary harm to either party involved in a
There are important criteria that must be met in the e-commerce sites before the purchase and the development of your data, as you must deal with professional sites in e-commerce, which meet the following requirements: