When preparing to sell your business, it’s easy to focus on traditional aspects like financial records, physical inventory, and employee transitions. However, your online presence is also valuable in today’s digital age. And the transfer of your digital assets to a new buyer needs to be managed carefully. After working with web clients that are in the process of selling their businesses, I’ve come to understand the sheer complexity and time investment required to transfer a company’s digital assets. It’s a lot of work.
This guide should help you navigate dealing with your digital assets, including your website and your domain name.
1. Create a Digital Asset Inventory
Start by creating a comprehensive list of all your digital assets. This inventory should include:
- Websites and domain names
- Social media accounts like Facebook, Instagram, TikTok, YouTube
- Email lists and marketing databases
- Digital products and content (e-books, online courses, software, blog posts)
- Online reviews and reputation management tools
- Analytics and data accounts
- Digital intellectual property (trademarks, patents, copyrights)
- Online payment systems
- Cloud storage accounts (like Dropbox)
- Customer relationship management (CRM) systems
A well-organised inventory will simplify the transfer process and demonstrate to potential buyers the total value of your digital presence. It will also make the handover much easier to manage.
2. Website and Domain Name Considerations
Your website is often the first point of contact for customers and can significantly impact your business’s value. This is especially true for e-commerce websites.
- Ensure domain names and hosting services are transferable.
- Highlight unique features, high traffic, or exceptional performance metrics.
- Contact your domain registrar to initiate the ownership transfer process early, as it can take time. Domain registrars have an official process you need to follow to transfer ownership of a domain name.
- Inform your web designer or developer about the change in ownership and introduce them to the new team for continuity.
- If a web company or designer hosts and manages your website, you must authorise them to give the new owners access.
3. Update and Secure Credentials
- Ensure all login credentials for digital platforms are up-to-date.
- Use a password manager to organise and securely share these details with the new owners.
- This step is crucial for maintaining security and ensuring a smooth transition of your online presence.
4. Social Media and Online Presence
Social media accounts and online presence can be invaluable to new owners, and they will want access once they’ve bought the business.
- Provide comprehensive access to all social media accounts.
- Include any content calendars, marketing strategies, and analytics reports.
- Compile a summary of your online reviews and reputation management strategies.
- Offer insights into any ongoing efforts to maintain or improve your online reputation.
5. Customer Data and Email Lists
A well-maintained customer database and email list represent a built-in audience for the new owner.
- Ensure all email lists and customer databases are up-to-date.
- Before transferring this data, verify compliance with applicable privacy laws (like GDPR or CCPA).
- Provide documentation on how this data has been collected and managed.
6. Digital Products and Content
If you’ve developed digital products or content, these can add substantial value to your business.
- Create a detailed inventory of all digital products (e-books, courses, software, etc.).
- Include performance metrics and sales data for these products.
- Ensure all necessary files and access rights are transferable.
7. Analytics and Data Insights
Your business’s data can provide valuable insights to the new owner.
- Prepare to transfer analytics accounts (like Google Analytics and Google Search Console).
- Compile reports on website performance, customer behaviour, and marketing effectiveness.
- Ensure all relevant historical data is accessible and adequately explained.
8. Intellectual Property Considerations
Digital intellectual property is a crucial asset that needs careful handling during a sale.
- Identify all digital trademarks, patents, and copyrighted material.
- Ensure proper legal transfer of these assets to the new owner.
- Provide documentation of any pending applications or ongoing disputes.
9. Review Contracts and Licenses
- Examine all contracts and licenses associated with your digital assets.
- Determine if they are transferable or if new arrangements need to be made.
- Pay special attention to software licenses.
- If using WordPress, check the licensing for any commercial plugins or themes. If it’s under your developer, the licensing may not stay active if the new owners cancel hosting or maintenance contracts.
10. Supplier and Service Provider Communications
Maintain continuity by properly managing relationships with digital service providers.
- Inform key digital suppliers (web designers, SEO specialists, content creators) about the sale.
- Provide the new owner with contact information and details of ongoing agreements.
- Facilitate introductions between the new owner and crucial service providers.
11. Valuation Considerations
When determining the value of your business, don’t underestimate the worth of your digital assets.
- Highlight the potential for growth and scalability that your digital assets provide.
- Demonstrate how your digital assets contribute to customer acquisition and retention.
12. Legal and Compliance Issues
Ensure all digital aspects of your business comply with relevant laws and regulations.
- Address any outstanding privacy or data protection issues before the sale.
- Ensure your digital operations comply with industry-specific regulations.
- Consider having a legal expert review your digital asset transfer process.
By thoroughly addressing these digital assets, you can ensure a smooth transition and maximise your business’s value. In today’s interconnected world, overlooking these assets could mean leaving significant money on the table. Take the time to appropriately inventory, value, and transfer your digital assets, and you’ll be well-positioned for a successful and profitable business sale.
