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What Should an Entrepreneur Consider When Acquiring a Business That Has an Online Presence?

For many entrepreneurs an online business presence is essential for success.  In acquiring a business that has an online presence, in addition to traditional due diligence, an entrepreneur must determine both the extent of any online content and how such online content is owned.  Specifically, an entrepreneur will want to establish whether such content is registered in the name of the selling business, or if it is improperly registered under the name of an employee or consultant.  Once ownership is verified, the next crucial step is to determine the mechanism by which the online content will be transferred in the sale.  Many entrepreneurs incorrectly believe that obtaining access to the associated passwords is sufficient to transfer ownership.  Rather, each platform (i.e. domain registrar or social media application) will have its own rules and requirements for transfer of online content in the context of a sale.

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