Q&A - How long will it take to sell my business?

From time to time, I will blog commonly asked questions and answers to help those of you who are considering selling your business. 

Q: How long will it take to sell my business?
A: The time needed for sale depends on a great many factors including the price of your business, the type of business, and your willingness to finance the buyer. In general, it takes 120-240 days or longer to find a buyer for a business. The price and the terms you are offering are important factors. The more reasonably priced and the better the terms offered, the faster the sale.

Here’s some advice –

You want to be updating your financials monthly and sending them to your intermediary. Buyers like to have a current picture of the business. Plan on 60-90 days from the time you have an accepted asset purchase agreement or stock purchase agreement to close escrow. It can take 3-6 months to get to the accepted offer stage or even 8-9 months.

I have a deal I’m working on that has over 30 Non-Disclosures signed and had four offers but we do not have a signed agreement. It has taken 9 months to get to this point.

The seller has become realistic on the price and understands now that there will be a large earn-out-due to 50% of the business being with one account.

Many variables affect the time on the market. Price it right, be available, keep the numbers current and things will happen a lot quicker.

I will gladly discuss with you how your business fits into these general guidelines. Contact us now to schedule a free consultation. Thank you!

-Joan Young

Sunbelt Business Brokers, Greater Bay Area | (408) 436-1900 | www.sunbeltbayarea.net