a single source, nothing corroborates it

Call the founders who sold to them before

Build your own list of prior sellers, ask the buyer for theirs, and start with the names that appear on yours and not on theirs. Ask each of them how the handover ran, whether goals stayed aligned and whether the buyer understood the business.

The method

1. 01

   Build your own list of at least five prior sellers, then ask the acquirer for their reference list, and call the founders who appear on yours but not theirs first. That gap is where the warnings live.

2. 02

   Ask past sellers a fixed set of questions: how the transition ran, whether goals were aligned, whether they were kept on longer than agreed, how the team was treated, and whether the buyer actually understood the business.

3. 03

   Ask where the acquirer's money comes from and note whether they will discuss it. A good actor gives at least some detail in confidence even when the fund is private.

Sources

• So You Got an Offer: How to Do Due Diligence on Your Potential Acquirer – The Bootstrapped FounderArvid Kahl · thebootstrappedfounder.com · You’re Making a List and Checking It Twice · 2020-01-09