How do I find out if a software reseller’s customers would switch vendors?

Loyalty can sit in three places: the reseller’s people, the software itself, or the price. Each means something different for you. Ask the seller who each major customer deals with, and how often. If the contact is the owner, you will want that relationship handed over slowly rather than at closing.

Then check what holds customers in place. Have they customized the software, trained staff on it, or linked it to other systems? Those ties make switching hard. Ask also whether the reseller agreement with the vendor can pass to you, and what the vendor says about it. Your lawyer should read that agreement before you rely on any customer list.

Finally, arrange conversations with a sample of customers near closing. Choose a mix of large and small, long-standing and new. Ask what they value, what annoys them and who they would call first. Compare what you hear with renewal records. If the two disagree, trust the records and keep asking. Keep your questions neutral and never suggest the reseller is for sale until the seller agrees. Customers who learn about a sale from the wrong person can react badly, so agree beforehand on who speaks to whom and what is said.

Key takeaways

• Work out whether loyalty belongs to the person, the software or the price.
• Check whether customers are tied in by training, customization or other systems.
• Have your lawyer confirm the vendor agreement can pass to a buyer.