What Documents Should You Get When Buying an Online Business?
A complete checklist of documents to request before closing any online business acquisition.
Start with the Core Financials
Request the last 36 months of P&L statements, balance sheets, and cash-flow reports broken down by month. Sellers should also provide tax returns (Form 1120 or 1040 Schedule C) for the same period. These records let you verify SDE and confirm that claimed EBITDA matches actual bank deposits.
Operational and Legal Documentation
Every acquisition needs a clean set of legal documents before signing the APA. Ask for the original formation documents (Articles of Organization or Certificate of Incorporation), operating agreement, and any amendments. You should also receive all executed customer contracts, vendor agreements, IP assignments, and privacy policies currently in force.
Platform-Specific Records
- Stripe or PayPal transaction exports for the trailing 24 months
- Domain registrar login credentials and WHOIS history
- Hosting and CDN invoices plus SSL certificate details
- Employee or contractor agreements plus any 1099-NEC filings
Customer and Revenue Verification
Obtain churn data, cohort retention reports, and MRR/ARR schedules that reconcile to the financials. Request at least 12 months of refund and chargeback logs; platforms like Acquire.com and Empire Flippers now require these disclosures in their data rooms. Compare top-20 customer concentration against total revenue—anything above 30 % usually triggers a lower multiple (typically 2.8–3.2x ARR in 2026).
Due-Diligence and Escrow Paperwork
Once the LOI is accepted, the buyer and seller jointly open an escrow account on the chosen marketplace (FE International, MicroAcquire, or hades.ae). The seller must upload the following items into the data room at least 10 days before closing:
- Representations and warranties schedule
- Disclosure schedule listing any ongoing litigation or IP disputes
- Transition-services agreement outlining 30–90 days of seller support
- Final asset-purchase agreement with all exhibits
Post-Closing Deliverables
At wire confirmation, the seller must hand over admin passwords, Stripe/PayPal ownership transfer receipts, and signed domain-transfer authorization codes. Keep a 10 % escrow holdback for 90 days to cover any undisclosed liabilities that surface after closing.
Key Numbers to Verify
2026 market data shows average SaaS businesses on hades.ae trade between 3.1–4.4x ARR, while content sites with under 15 % churn close closer to 2.6–3.0x SDE. Always reconcile the provided MRR schedule against actual Stripe payouts within 2 % tolerance before releasing funds.
What happens if documents are missing?
Walk away or renegotiate price; missing tax returns or customer contracts typically reduce valuation by 20–35 %.
How long should records be kept after closing?
Retain all financials and contracts for at least seven years to satisfy IRS audit windows and any earn-out calculations.
Can I use the same checklist on every marketplace?
Yes—Empire Flippers, Acquire.com, FE International, MicroAcquire, and hades.ae all accept the same core document set, though each may add one or two platform-specific compliance forms.
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