Selling a Business: How Long Does It Take?

October 8, 2014
|

A recent survey revealed that the average time between listing and sale was 9 months.

Why does it take so long to sell a business?  Price and terms are the biggest reasons.  Not over-pricing the business at the beginning of the sales process is a big plus, as well as structuring the transaction to include a reasonable down payment with the seller carrying the balance. Having all of the necessary information right from the beginning can also greatly reduce the time period from listing to closing. 

Being prepared for the information a buyer may want to review or having the answers available for the questions a buyer may want answered is also key.

Here is the basic information that a prospective acquirer will want to review:

In addition, here are some of the questions that buyers may have.  A prepared seller should have ready answers as well as the information to support them.

A prepared seller is a willing seller, and having the answers to the above questions can significantly reduce the time it takes to sell a business.  Using the services of a professional business broker can also greatly reduce the time period.  They are knowledgeable about the current market, how to market a business and how to best advise a seller on price and terms.  They can also recommend professional advisors, if a seller doesn’t have them already.  Using advisors who are transaction-experienced can also shorten the time it takes to close the sale.