Buying a business online can seem like a dream come true, a golden opportunity unearthed on online-businessforsale.com. But beware: behind the tempting figures and promises of success sometimes lie unsuspected risks, veritable time bombs ready to explode.

In this article, we’ll turn you into a private detective, armed with an infallible lie detector. You’ll learn how to unmask unscrupulous salespeople, decode red flags and protect your investment from the most devious traps. Get ready for a thrilling investigation, where every clue will bring you closer to the truth.

Act 1: The artificial growth trap

A salesman presents you with impressive growth figures, worthy of a tech unicorn. But how do you know if these figures are real or a mirage?

Your mission:

• Check data consistency: Growth figures must be consistent with the company’s other financial data (sales, profit, etc.). If you find any inconsistencies, dig deeper.
• Analyze traffic sources: If traffic growth comes mainly from paid sources, beware. Once advertising campaigns stop, traffic is likely to plummet.
• Ask customers: Contact a few customers to find out whether they are satisfied with the company’s products or services and whether they intend to return.

Act 2: The mystery of hidden debts

A seller assures you that the company is in perfect financial health, with no debts. But how can you be sure he’s not hiding anything?

Your mission:

• Demand financial statements: Ask the seller to provide you with balance sheets, income statements and cash flow statements for recent years.
• Analyze short- and long-term debts: Check whether the company has debts to suppliers, banks, social organizations, etc.
• Assess repayment capacity: Make sure the company generates enough income to repay its debts.