I saw someone pose this question on Twitter today and I thought it would make for an interesting discussion here on Searchfunder.

Investors: Assuming you find the deal attractive, how do you do due diligence on new searchers or sponsors? Reference checks / background checks / etc?

Searchers and sponsors: What experiences have you had with prosepective investors doing DD on you (rather than on your deal) that made you more or less interested to work with them?