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Absolutely agree – doing due diligence regardless of the type of business being purchased is essential. Where do new customers coming from? What percentage of customers are return orders? How do the products stack up compared to competitors? How competitive is the industry? Where are new sources of competition or products likely to come? Where are competitors selling? Plus of course financials. If it’s an online business, they’ll likely have Google Analytics stats that you can analyse as well. +1 on John’s comment about the value of domains and other intangible assets like trademarks is an important one that is often overlooked.