Much has been said about due diligence from the perspective of how a seller should prepare, and what to expect during the stringent process a sophisticated buyer will employ to assure they know what they are buying. Less has been said about the value on the seller's side to do proper due diligence on a potential acquirer. Start with understanding the acquisition history of a potential buyer, including how active the buyer has been and any available financial metrics and deal structure data on prior deals. Also, dont be hesitant to ask the buyer about the prior activity, and their success in doing acquisitions. Understand what the buyer expects to do post-close regarding integration of teams, costs cutting, relocation of staff, etc.

You don't often get a chance for a software M&A exit, so ask the right questions and make sure you are comfortable with the answers. If possible, interview the CEO of one of their recent acquisitions to confirm that this is the right decision for you.