What should I ask about a reseller’s relationship with its publisher’s account managers?

A reseller sits between a publisher and its customers, and the account manager at the publisher is often the person who keeps the arrangement alive. Ask the seller to name every account manager the business works with, how long each has been in the role and how the seller communicates with them. Ask to read recent emails about pricing, stock, targets and any complaints.

Then ask what is documented. Is there a signed reseller agreement? Does it cover territory, product range, minimum purchases and what happens if the ownership changes? Your lawyer can explain how it reads and what the publisher can do after a sale. Find out whether the publisher’s approval is needed and whether the seller has raised the sale with them. Better to learn their reaction before closing than after.

Look at how the money flows. Ask about the terms the publisher gives, how invoices are paid and any amounts owed in either direction. Your accountant can explain how receivables and payables appear in the books. If the account manager moves on, ask who the next contact would be and whether the seller has relationships higher up in the company. Write down what the seller says so you can compare it later.

Key takeaways

• Name every account manager and read the recent correspondence.
• Ask whether the publisher knows about the sale and what it has said.
• Check amounts owed to and by the publisher.