At ESL Advisers, we often get asked about the expected duration of a business sale. Typically, a business deal can take anywhere between 6 to 12 months to complete, with a significant portion of the time spent finding a prospective buyer. Once a buyer is found, the negotiation process begins, which can take an additional 2 to 4 months to close the deal.
By working with experienced exit consultants, business owners can navigate the complexities of the sales process and minimize the time it takes to close a deal.
In this article, we'll explore the factors that affect how long it takes and strategies to reduce the time of acquisition deals after finding a suitable buyer. Whether you're a seasoned business owner or just starting, understanding these critical factors can help you navigate the sales process more effectively and achieve your goals.
What's The Average Time To Sell A Business?
This depends on several factors, such as the business's size, complexity, industry, negotiating, and due diligence processes. According to an insight report by BizBuySell, the average time to sell a business is around 6 to 12 months.
However, this timeframe can vary widely depending on the specific circumstances of the deal. For example, a larger or more complex business may take up to a year or more to sell, while a smaller or simpler company may sell more quickly, within a few months.
Factors That Affect How Long It Takes To Sell Your Business
Several factors can affect how long it takes to sell your business, including:
Financial Performance: Buyers are typically interested in businesses with a strong financial performance track record. If your company has a history of being profitable, it may be more attractive to buyers and sell more quickly.
Industry: The industry of your business can also affect how long it takes to sell. Some industries are more popular and in demand than others, which may impact the number of potential buyers and the time it takes to find a suitable one.
Business Valuation: The price and valuation of your business can also impact how long it takes to sell. If your asking price is too high, it may deter buyers and lead to a longer sales process.
Market Conditions: The overall market conditions, such as economic trends and industry-specific factors, can also affect how long it takes to sell a business. If the market is slow or uncertain, it may take longer to find a buyer.
Negotiation And Due Diligence: The negotiation and due diligence processes can also impact how long it takes to sell a business. These processes involve extensive research, analysis, and communication between the buyer and seller, which can take time.
How To Reduce The Time Of Acquisition Deal After Finding A Suitable Buyer