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Questions Frequently Asked Concerning The Purchase Of A Website

859 words - 4 pages

Questions Frequently Asked Concerning the Purchase of a Website

Reprinted with permission of

What are the key motivators for people to buy a website?
Before making a decision to purchase a website, a buyer should understand his or her objectives to make sure those objectives can be met by purchasing a particular website. Surveys of people purchasing websites reveal similar responses. Surprisingly, making money is not at the top of the list. Here is a list of the typical answers, in their order of importance:

I want to control my own destiny.
I would be happier if I worked for myself.
My current work does not take advantage of my skills and abilities.
I want to ...view middle of the document...

Because many experts believe you should not purchase a website unless you can make it better, it is helpful if a buyer has some definite ideas on how to improve the purchased website.

Can I obtain financing to help me buy a website?
The availability of outside financing will depend upon the asset base of the website, its operating history, collateral availability and projected cash flow - the same issues considered in all business lending. The SBA is a helpful resource when trying to determine what type of financing is available.

How is the asking price of the website determined?
Sometimes the seller will simply make up an inflated asking price to determine if there is any interest in his website at the inflated price. Other times, the seller will obtain a professional valuation of the website.

Should I hire an attorney?
The answer to this question depends a great deal upon your appetite for risk. If the purchase price represents a significant amount of money to you, then it is a good idea to retain an attorney to review the necessary legal documents. It is important that the attorney you hire be familiar with business acquisitions to be as effective as possible during the process.

Why is confidentiality so important to the website seller?
Typically, confidentiality is very important to a seller. It can be damaging to a website if it is known that it is for sale. Customers may not be interested in buying from a website that is up for sale and competitors could use the information to their advantage.

What is due diligence?

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