Well, like any other business purchase - you`d want to see the profit and loss for the business for the current and last few years. So you can determine the source and diversity of income and major cost components. You`ll want to then rework those to reflect your expected costs (if different).
Find out why the person is selling?
Important is the drop ship relationship... what are the terms, will they be the same for a new owner? Are the terms changing?
Perform an analysis to determine if the business itself can support the purchase price or if you have to kick in some $$?
For the ecommerce site - find out all the details about how the site runs now, do you have to keep the same web host, the costs, and how the site is maintained.
Traffic and competition - certainly look at the traffic both historical and current for the site. Where the traffic comes from (direct hits, referrals from other site, and searches) and the volume for each source. Is the traffic sustainable? Can it be increased? What SEO methods are used, back links, keywords... and who are the competing websites?
~Roland
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