reply
by an investor
5mos ago
from Pennsylvania State University
in Pennsylvania, USA
When diligencing digital assets, I try to inventory access first, then validate value, then look for risk. In practice, this is the order I usually go in.
1. Access & ownership (do this first)
• Domain registrar. Confirm ownership, renewal dates, DNS access
• Hosting account(s). AWS, GCP, VPS, etc. Confirm billing owner and admin access
• Google Analytics and Search Console ownership. Admin access, not just viewer
• Ad accounts. Google Ads, Meta, Pinterest, TikTok if applicable
• CRM, ESP, and customer databases
• Source code repos if any custom software exists
If you cannot get admin-level access, that is already a diligence finding.
2. Traffic & audience assets
• Google Analytics. Channel mix, trends, seasonality, top landing pages
• Search Console. Queries, pages, impressions vs clicks, index coverage issues
• Email platform. List size, growth, engagement, deliverability
• Social accounts. Follower counts, engagement, referral traffic contribution
Benchmarks I look for:
• Heavy reliance on a single channel = risk
• Flat or declining branded search = warning sign
• Email engagement far below industry norms often signals list decay
3. Revenue systems
• Stripe, PayPal, or processor exports. Gross vs net, refunds, chargebacks
• Subscription vs one-time mix
• Customer concentration. Top 5–10 customers as % of revenue
• Renewal and churn mechanics. Especially auto-renew vs manual
I usually reconcile processor data to the P&L. Mismatches are common and important.
4. Content & IP
• CMS access and content inventory
• Who actually owns the content. Employees vs contractors
• Licensing on images, fonts, templates, and any third-party data
• AI-generated content. When used, how, and with what tools
5. Technology stack
• CMS, plugins, themes, and update cadence
• Custom code vs off-the-shelf tools
• Third-party dependencies and API risk
• Backup, monitoring, and basic security posture
Benchmarks here are less about perfection and more about maintainability. If it is fragile or undocumented, expect post-close work.
6. Operational glue
• Key workflows. Lead intake, fulfillment, support, billing
• Single points of failure. People, vendors, or tools
• What breaks if one person disappears for 30 days
That last point is often the most valuable diligence insight.
I do diligence work focused heavily on digital and online businesses, and this checklist is roughly the order I use in real reviews. Even if you outsource parts of it, having a structured approach like this makes it much easier to spot risk early and avoid surprises after close.