Due Diligence of Digital Assets

Due diligence of digital assets is a review of a company's intangible assets before its sale, an investor's entry, or the purchase of an e-shop. The buyer verifies whether what generates revenue actually belongs to the company and whether it can be transferred. Typically checked are the domain registration and its history, ownership of the source code and licences for the software used, who the advertising and analytics accounts are registered to, the legal basis for processing personal data in the customer database, contracts with suppliers and their notice periods, registered trademarks, and copyright to content and photographs. The findings directly affect the price: a database without demonstrable consent is unusable, a domain registered to a private individual is a risk, and a website on a supplier's platform is not an asset. It therefore pays to keep the assets in order on an ongoing basis, not only when negotiations begin.

See also: Digital Assets of a Company, Ownership of the website and source code, Access policy for company accounts.