Digital Due Diligence: What Investors Actually Need to See

Introduction

Traditional commercial and operational due diligence often overlooks digital performance — or treats it as a marketing concern. This is a mistake.

Digital capability increasingly determines:

  • Speed of value creation
  • Risk exposure
  • Exit attractiveness

Digital due diligence is no longer optional.


Why Digital Is Often Missed

In many deals:

  • Digital is assessed superficially
  • Platform metrics are taken at face value
  • Data quality is assumed
  • Execution capability is overstated

The result is a post-acquisition reality gap.


The Five Digital Areas That Matter

When EVOS supports digital due diligence, we focus on:

  1. Revenue quality by channel
  2. Margin and unit economics
  3. Attribution and data integrity
  4. Operational scalability
  5. Team and execution capability

These directly affect valuation and speed to impact.


Common Red Flags

  • Marketplace growth with declining contribution margin
  • Paid media without incrementality testing
  • Fragmented analytics and reporting
  • Over-reliance on agencies or single individuals
  • No clear digital roadmap post-close

Each red flag increases execution risk during the hold period.


From DD to 100-Day Plan

Effective digital due diligence feeds directly into:

  • Priority setting
  • Early wins
  • Resource allocation
  • Risk mitigation

Without this linkage, DD insights are wasted.


EVOS Perspective

Digital DD should not produce a report — it should produce actionable priorities.

We treat digital as a value creation lever, not a marketing channel.

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