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Red flag library

The warning signs that come up again and again when buying a small business: why each one matters, how to spot it, what to ask the seller and which documents to request.

6 red flags for Online and platforms.

Online and platforms

6 red flags

  • Traffic reliant on one search engine or exposed to AI search changes

    When most visitors arrive from one search engine, the business depends on rankings it does not control. AI-generated answers in search results can also cut clicks while rankings hold steady.

    Severity: price it inContent, Ecommerce, SaaS, App, Marketplace

  • Recent algorithm or policy hits

    A sharp fall in traffic, sales or reach after a search update or a platform policy change. The listing's 12-month figures may still include the stronger months before it.

    Severity: price it inContent, Ecommerce, App, SaaS, Marketplace

  • Marketplace account health warnings

    Warnings, strikes or weak performance scores on a marketplace or app store account that could lead to listings being removed or the account being suspended. Where most sales run through one account, that can stop revenue overnight.

    Severity: price it inEcommerce, App

  • Fake or incentivised reviews

    Ratings built on fake reviews, or on reviews customers were rewarded for without saying so. The reputation you think you are buying may not survive scrutiny from platforms or regulators.

    Severity: deal breakerAll business models

  • Domains or accounts held in personal names

    The domain, social profiles, app store, advertising or payment accounts belong to the owner or a freelancer rather than the business. They may not pass to you unless the deal says so.

    Severity: fixableAll business models

  • Code quality and security debt in software

    Software that works today but is hard to change, poorly tested, built on unsupported components or open to attack. The cost of putting it right falls on the buyer.

    Severity: price it inSaaS, App, Marketplace