The Question Buyers Keep Asking

We hear this from PE firms and acquisition teams regularly: “How can you help us with digital due diligence?”

The answer depends on timing. Digital due diligence looks very different before the deal closes compared to after. Each phase requires a distinct approach, different deliverables, and serves a different purpose in your acquisition strategy.

Pre-transaction is about risk assessment and deal protection.

Post-transaction is about integration and operational continuity.

 

Pre-Transaction Digital Due Diligence

Pre-transaction work is advisory and consulting in nature. The goal is to help buyers understand what they are actually acquiring before they sign.

Most traditional due diligence focuses on financials, legal, and operations. Digital assets rarely make the checklist. But these assets power the business: the website, marketing platforms, customer data systems, and online presence that generate revenue.

What Pre-Transaction Due Diligence Uncovers

  • Ownership gaps: Domains registered to former employees, ad accounts controlled by agencies, hosting under personal credit cards
  • Infrastructure risks: Outdated websites, unsupported technology, security vulnerabilities
  • Hidden costs: Deferred maintenance, required upgrades, compliance gaps
  • Transfer complexity: Assets that will be difficult or impossible to move
  • Valuation concerns: Marketing performance claims that cannot be verified

Pre-Transaction Deliverables

  • Digital asset inventory with ownership verification
  • Risk assessment and red flag report
  • Estimated remediation costs
  • Recommended deal terms or conditions
  • Questions for the seller

The value: Pre-transaction due diligence protects the deal. It gives buyers leverage to negotiate, adjust valuations, or structure terms that account for digital risk.

 

Post-Transaction Digital Due Diligence

Post-transaction work is integration and ownership focused. The deal is done. Now the buyer needs to actually take control of what they purchased.

This is where many acquisitions stumble. The seller handed over some passwords. IT was supposed to handle the rest. Three weeks later, marketing systems are offline, nobody can access the domain, and the previous owner is unreachable.

What Post-Transaction Integration Addresses

  • Access transfer: Moving all credentials to buyer-controlled accounts
  • Ownership documentation: Creating a complete digital asset inventory
  • Vendor transitions: Updating billing, contacts, and contracts
  • System continuity: Ensuring nothing breaks during handoff
  • Ongoing management: Establishing monitoring and maintenance

Post-Transaction Deliverables

  • Complete Ownership Mapping Framework documentation
  • Centralized credential management
  • Renewal tracking and alerts
  • Vendor contact registry
  • Ongoing Digital Asset Management (optional)

The value: Post-transaction support prevents the costly disruptions that derail integration timelines. It ensures the buyer actually controls what they paid for.

 

Side-by-Side Comparison

FactorPre-TransactionPost-Transaction
Primary purposeRisk assessmentIntegration and control
Nature of workAdvisory and consultingImplementation and management
TimingDuring LOI or due diligenceImmediately after close
Key question“What are we actually buying?”“How do we take control?”
OutputReports and recommendationsDocumentation and systems
StakeholdersDeal team, legal, leadershipOperations, IT, marketing
Engagement length2 to 4 weeks4 to 8 weeks (or ongoing)

 

When to Engage Each Service

Engage Pre-Transaction Support When:

  • You are in LOI or active due diligence
  • The target company has significant digital operations
  • You want to validate marketing performance claims
  • Previous acquisitions have had digital surprises
  • You need ammunition for price negotiation

Engage Post-Transaction Support When:

  • The deal has closed or is closing soon
  • You need to consolidate access across acquired companies
  • The seller’s handoff documentation is incomplete
  • You are integrating multiple acquisitions
  • You want ongoing digital asset management

 

The Cost of Skipping Digital Due Diligence

Buyers who skip pre-transaction digital review often discover problems after close. At that point, there is no leverage. The seller is gone. The issues become the buyer’s problem to solve, at the buyer’s expense.

Common post-close discoveries include:

  • Domains registered to individuals who no longer work there
  • Marketing accounts with no admin access available
  • Websites running on unsupported platforms requiring full rebuilds
  • Analytics data that was never properly configured
  • Vendor contracts with unfavorable terms or auto-renewals

These issues typically cost $15,000 to $50,000 to resolve, not including the operational disruption and delayed integration timelines.

 

Frequently Asked Questions

Can we do both pre-transaction and post-transaction work?

Yes. Many buyers engage us during due diligence and then continue through integration. The pre-transaction work creates a roadmap that accelerates post-transaction execution.

What if we already closed without pre-transaction review?

Post-transaction support can still identify and resolve issues. It takes longer and costs more than catching problems before close, but it prevents ongoing operational risk.

How does this work for platform companies with multiple acquisitions?

We provide standardized digital due diligence across your acquisition pipeline. Pre-transaction reviews follow a consistent framework. Post-transaction integration rolls each new company into your centralized digital asset management system.

What access do you need from the seller during pre-transaction review?

We work from data room materials and targeted information requests. We do not require direct access to seller systems during pre-transaction advisory work.

 

Planning an Acquisition?

Whether you are in due diligence or post-close integration, we can help you understand and control your digital assets.

Schedule a Consultation