Advantages of buying over building
- Assess whether the technology suits its purpose
- Evaluate whether it will integrate quickly, efficiently and cheaply into the corporate systems
- Check whether the employees will integrate into a traditional company.
Dotcom bargains to watch out for
- Lastminute.com has a year (of finances) to prove itself to the markets. It might be a good buy for a travel agent that is struggling to move online
- Scoot.com announced in July that it had one month of cash reserves left. Non-UK operations were sold for c1 (60p), it is now assessing what other parts of the business are for sale
- Fish4 is owned by a consortium of print media companies
iXM (the interactive version of Exchange & Mart) is a wholly-owned subsidiary of United News and Media
- The global advertising network DoubleClick could be a good buy for an advertising agency looking to specialise online.
- There is an abundance of application service providers, such as FutureLink, that are struggling for cash. Some insiders would love the company to become the basis for Microsoft's bCentral.
- Few of the experts on Internet businesses picked any business-to-business exchanges as potential purchases.