How do I check a software reseller’s relationships with its vendors before buying?

Start with the paperwork. For each vendor, ask what the reseller is allowed to sell, to whom, under what pricing, and what the reseller has to achieve to keep the arrangement. Check whether the agreement can be transferred to a new owner or whether the vendor must agree first. If approval is needed, that conversation shapes the whole deal.

Then separate the vendors by importance. Ask which two or three bring in most of the income, and what would remain without them. A reseller relying on one vendor is exposed to that vendor’s decisions, such as taking the business direct, changing its margin or signing another reseller in the same area.

Finally, find out who the relationship belongs to. If the vendor’s contact trusts the current owner personally, ask how the seller will introduce you, and whether they will stay for a transition. Ask about unpaid amounts, rebates owed and support the vendor has promised. Have your lawyer read each agreement before you commit. Ask whether any vendor has recently changed terms, added a competing reseller, or hinted at selling direct. Recent changes often explain figures that look odd. Ask for emails showing how those conversations ended.

Key takeaways

• Read each vendor agreement for change-of-ownership terms.
• Find out which vendors produce most of the income.
• Speak to key vendors, with the seller’s consent, before closing.
• Learn who holds each relationship personally.