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How Long Does It Take to Sell a Business?
There is really no simple answer. Selling a business isn’t like selling a house: put a price tag on it, list it, and wait for buyers to make offers. It is a complex process that takes a considerable amount of time.
This is a brief summary of the process and the timelines:
Preparation: 3-5 Weeks (Estimated)
• Preliminary meetings, valuation, determination of your objectives
• Interviews to learn about your business
• Gathering financial and other information from you
• Preparing the Confidential Information Memorandum and Information Teaser
Marketing: 3-5 Weeks (Estimated)
- Developing a marketing plan
- Conducting buyer research
- Qualifying buyers
- Evaluating offers
Working With The Buyer: 8-12 Weeks
- Negotiating the price, structure, and terms of the deal
- Managing the due diligence process
- Closing activities
Your Involvement
Since you are involved in many of these activities, the time it takes to sell your business also depends, to a great extent, on your commitment and available time. We realize you also have a business to run so it is understandable that your schedule may prolong the timeline.
Frequently Asked Questions
How long does it usually take to sell a business?
On average, selling a business can take several months. Unlike selling a house, it’s a complex process involving preparation, marketing, negotiations, and due diligence.
A typical transaction may take anywhere from 4 to 9 months, depending on the business, the market, and the seller’s availability.
What are the main stages in the sales process and their timelines?
The process of selling a business generally includes:
- Preparation (3–5 weeks): Valuation, gathering financials, and preparing marketing documents.
- Marketing (3–5 weeks): Developing a marketing plan, researching buyers, and evaluating offers.
- Working with the buyer (8–12 weeks): Negotiations, due diligence, and finalizing the deal.
What factors can influence how quickly my business sells?
Several factors affect the timeline, including the business’s size, industry, financial health, and market conditions. Your own involvement also matters, providing information promptly and staying engaged helps keep the process on track.
