If you’re considering selling your business, one of the first questions you may have is: How long does it take to sell a business?
While every transaction is different, a business sale will typically take approximately nine to twelve months to complete. Some transactions move much faster. I have completed a business sale in as little as two months. Others can take considerably longer, sometimes up to two years, and unfortunately, some transactions never reach the closing table.
There are many steps involved in selling a business. An experienced business broker helps manage those steps, coordinate the professionals involved and keep the transaction moving while allowing the seller to remain focused on what they do best: operating the business profitably.
What Is the Typical Timeline for Selling a Business?
Although every business sale follows its own timeline, the process can generally be broken into four stages.
Months 1–2: Valuation and Preparation
The first stage is preparing the business to go to market.
This typically includes completing a Broker Opinion of Value, reaching an agreement with the seller on an appropriate asking price and preparing the marketing materials needed to confidentially present the business to potential buyers.
Establishing a realistic value at the beginning of the process is important. Pricing can influence buyer interest, financing and ultimately how long it takes to successfully sell the business.
Months 3–6: Marketing and Finding Qualified Buyers
Once the business is prepared for sale, the focus shifts toward identifying potential buyers.
During this stage, the business broker may conduct direct marketing, advertise the opportunity online and begin responding to buyer inquiries.
Interested buyers typically complete a Non-Disclosure Agreement (NDA) before receiving confidential information about the business. Potential buyers must also be vetted to determine whether they have the experience, financial resources and qualifications necessary to pursue the transaction.
Months 7–8: Buyer Meetings and the Letter of Intent
Qualified buyers can then receive more detailed information through a Confidential Business Review.
Buyer and seller meetings may also take place during this stage. These conversations allow both parties to learn more about one another, discuss the business and determine whether the opportunity is a good fit.
If the buyer decides to proceed, the parties may negotiate and agree upon a Letter of Intent (LOI) outlining the proposed terms of the transaction.
Months 9–12: Financing, Agreements and Closing
The final stage brings together many of the details required to complete the sale.
Contractual agreements are drafted and reviewed, financing is finalized and any remaining issues are addressed before closing.
Financing alone can take up to three months, which is one reason it is important to begin preparing for this portion of the transaction as early as possible.
Once the agreements, financing and remaining requirements are complete, the transaction can move to closing.
Can a Business Sell Faster Than 9–12 Months?
Yes. A business can sell much faster under the right circumstances.
I have personally completed a transaction in just two months. However, business owners should not assume that every sale will happen that quickly.
The stages of a business sale can overlap, and they do not always occur sequentially according to a precise calendar. The complexity of the business, buyer interest, financing and issues that arise during the transaction can all affect the timeline.
Some transactions may take as long as two years to complete, while others ultimately do not close.
For a seller, the goal should not simply be to complete the transaction as quickly as possible. The goal is to manage the process efficiently while working toward a successful outcome.
How Does a Business Broker Help Keep the Sale Moving?
There are a lot of moving pieces between deciding to sell a business and actually reaching the closing table.
The role of the business broker is to manage those steps, coordinate communication among the parties and help drive the transaction forward.
At Oak Capital Advisors, we guide business owners throughout the selling process while allowing them to continue focusing on running their businesses.
If you’re considering selling a business in Raleigh, the Triangle or elsewhere in North Carolina, you don’t have to wait until you’re ready to list the business to begin preparing. Understanding its value and the potential timeline can help you make informed decisions about what comes next.
Contact Oak Capital Advisors to start a confidential conversation about selling your business.
