Flippa has a great due diligence service

Prashant Sharan

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One of the concerns I’ve always had about buying an existing online business is that after it changes hands the traffic and revenue will evaporate. There are so many ways that someone could misrepresent their revenue, profit, traffic, etc. that it feels like it would take a good chunk of time for me to really verify I’m getting what I think I’m getting.

I think the most common trick I’ve seen people try is to dump a bunch of money into advertising but only show the revenue it generated. Here’s an example.

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