The Complete Due Diligence Checklist for Digital Asset Buyers

Back to Blog
The Complete Due Diligence Checklist for Digital Asset Buyers
Buying

The Complete Due Diligence Checklist for Digital Asset Buyers

Mike ChenJanuary 12, 202512 min read

The Complete Due Diligence Checklist for Digital Asset Buyers

Buying a digital business on Swappir is an exciting opportunity, but it comes with risks. Thorough due diligence is your best protection against surprises after the purchase.

Financial Due Diligence

Revenue Verification

  • Request access to payment processor accounts (Stripe, PayPal)
  • Verify bank statements match reported revenue
  • Check for revenue concentration (any single customer >10% of revenue)
  • Analyze revenue trends and seasonality
  • Use Swappir's verification tools to confirm metrics

    • Expense Analysis

  • Review all recurring expenses
  • Identify owner-specific costs that won't transfer
  • Verify hosting, software, and service costs
  • Check for any hidden liabilities

    • Technical Due Diligence

    Code and Infrastructure

  • Review codebase quality and documentation
  • Check for technical debt
  • Verify backup and disaster recovery procedures
  • Assess scalability and performance

    • Dependencies and Integrations

  • List all third-party services and APIs
  • Verify all accounts are transferable
  • Check for deprecated dependencies
  • Review compliance with service terms

    • Legal Due Diligence

  • Verify ownership of all assets (domain, code, trademarks)
  • Review customer contracts and terms of service
  • Check for any pending litigation
  • Verify compliance with data protection laws (GDPR, CCPA)

    • Operational Due Diligence

  • Document all business processes
  • Identify key person dependencies
  • Review customer support systems
  • Understand marketing channels and strategies

    • Customer and Market Due Diligence

  • Analyze customer retention and churn
  • Review customer feedback and support tickets
  • Assess competitive landscape
  • Evaluate market growth potential

    • Red Flags to Watch For

    1. Declining or inconsistent revenue

    2. High customer concentration

    3. Lack of documentation

    4. Reluctance to share information

    5. Unusual spikes in metrics before sale

    Using Swappir's Due Diligence Features

    Swappir provides tools to streamline your due diligence:

  • Secure document sharing
  • Verified revenue metrics
  • Direct messaging with sellers
  • AI-powered risk scoring
  • Transaction support

    • Conclusion

    Due diligence takes time and effort, but it's essential for making an informed purchase decision on Swappir. Don't rush this process – the insights you gain will either confirm your purchase decision or save you from a costly mistake.

    Swappir's platform is designed to make due diligence easier and more transparent for both buyers and sellers. Use all available tools to protect your investment.

    M

    Mike Chen

    Digital M&A advisor and founder of multiple acquired startups

    Related Articles

    Buying

    5 Red Flags to Watch Out for When Buying a Digital Business

    6 min read