How Long Does It Take To Sell A Business?
According to a housing market data compilation assembled by HGTV, it takes approximately 56 days to sell a home in Vancouver.
But a business is not a home. So how long does it take to sell a business in Vancouver?
Approximately 9 months.
Of course, selling your business could take less or more than 9 months, depending on a number of different factors. Businesses that are priced appropriately can take less than 6 months to sell, while businesses that encounter roadblocks that make selling more difficult might take more than a year to sell.
Let’s look at some of the factors that can influence the speed at which a business can be sold:
Factors which may delay the sale of your business
The sale price is too high
This is probably one of the biggest causes for delay in a business sale - and it’s understandable. You’ve poured your heart and soul into a business, and you want to get a good price for it. One of the advantages to working with a business broker is that we can help you evaluate a good price for your business - one that will strike the perfect balance between getting you the money you deserve and helping the business move on the market.
Sometimes, a key employee leaves when you’re attempting to sell the business, and you may want to take the time to train someone else to take their place before the business is sold. Other times, disaster strikes, and fire, flooding, or other catastrophes send business operations grinding to a halt. You’ll want to wait until your insurance policy pays out and you can get everything running smoothly again before the sale is completed.
If a key customer leaves your business during the sales process, or you see a sudden drop in revenue, you may find it difficult to sell your business at the price you know it’s worth.
Bureaucracies are notoriously slow moving. You may need to comply with government regulations, like inspections, before selling your business. In the same vein, you may need to wait for your buyer to file paperwork with the government. They may, for example, need approval for an immigrant investor visa.
Lawsuits can also pose a great many difficulties when it comes to selling businesses. While some investors may be willing to buy your business when a lawsuit is pending, these buyers will typically hold back a portion of the sales price until the lawsuit is completed.
Unless you own the property you operate your business out of, landlords can create tension in the buying process. They’ll typically want to be involved to ensure that the buyer has sufficient means to continue to pay the rent. What’s more, they may want to renegotiate the lease.
Dealing with delays when selling a business
There are several methods you can use to encourage buyers to purchase your business - and ways to get past the roadblocks discussed above. Vendor financing and earn-outs can help you get the price you’re looking for. Jason can help you set the right price, as well as complete due diligence, file legal documentation, and handle all the paperwork.
If you’re interested in selling your business more quickly, and you’re encountering delays, get in touch with us. We’ll help you get past the roadblocks and sell your vancouver business at the right price.