I have successfully used FME in the past to do this type of conversion. I can't remember if there were any other quirks to the translation, but if you've never used it before you would essentially just add the appropriate readers and writers, hook them up and see if it works.
In my case I was converting from Google Earth (KMZ) files, which use COLLADA (.dae) models internally. The KML in the KMZ file is what provides the georeferencing information, and FME reads it automatically.
I believe the COLLADA specification provides no place to store georeferencing information, so you will need to address that issue somehow.
This FME Evangelist post talks about the georeferencing issue: GeoNerds, Breadcrumbs, and 3D Georeferencing
See also, related question: How can I export a sketchup Model to ArcGIS's Multipatch?