I like to get some opinion and feedback from fellow members here.
A lot of hosting clients, businesses and "companies" go up for sale on this forum from time to time. Where most sound and are legit... one particular one caught my attention:
Newly established company with several hosted sites in short period of time.
99% of the hosted domains were created after the host domain was created.
99% of the hosted domains have privacy guard on them.
Most sites have some sort of CMS installed with few posts.
Most hosted sites have google ads...
How does this sound to you? Please share your thoughts.
Find out how they receive payment. If they are receiving payments via PayPal then request to be given access their PayPal account so you may review their "PayPal Received" payments. This will allow you to match the invoices in WHMCS or whatever billing system they are using with the Payments Received in PayPal. Of course, these are details you could only request for after some form of an NDA has been signed.
Also, use an Escrow service www.escrow.com for the transaction process which will provide insurance for both parties the Buyer and Seller. These are basic security measures anyone should follow. If this is for a large transaction or acquisition then you should request for a copy of their income statement, balance sheets etc. My personal opinion, from the information you provided, this sale screams trouble .
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If you can get in contact with the seller and get some proof of previous transactions and how many clients they have then maybe you can justify buying it. But the information given sounds suspect to say the least.