What is the Typical Timeline For Selling a Company?
What is the Typical Timeline For Selling a Company?
How long does it take to sell a business? The truth is that there is no set timeline for a sale. On average, sellers will often finalize a sale between 6-12 months but it all depends on preparedness.
The process of selling a business starts long before listing. Before marketing a business for sale, create the most appealing profile possible. Facilitating a timely sale begins with due diligence. The time before listing should be used to collect documentation for an honest look at your company in its current form.
Selling Your Business: What Impacts Your Timelines and Schedules
Before signing a purchase agreement, you will need to have a potential buyer. The better that your business looks, the more interest you will have from potential buyers. Multiple points of interest increase your chances of sale.
Preparation of Business Documents: There is a ton of information that needs to be collected before listing a business. The majority of this documentation is financial in nature. You can expect to present both current and historical financial statements, tax returns, accounting records, any loans and/or borrowing agreements, fixed assets, equipment, leases, staffing and more.
Timeline of Information: Wait times kill sales! In the event that you don’t have ready access to necessary paperwork, it is important to act quickly. The longer that a timeline drags out, the greater the risk of a seller moving onto a different opportunity.
Quality of Info: Clear and accurate information is crucial to creating an efficient sale and listing process. If information is disorganized or confusing it will delay the sale process. As potential buyers and their legal teams sort things out it will push timelines backward.
Business Appeal: How attractive is your business profile? A self-sustaining business is much more appealing than one that is demanding and requires owners to be hands-on. A strong staff mitigates this concern. A great team combined with clear industry standards and daily operations is a huge asset to any sale.
Vendors & Commitments: Existing contracts pave the way for a smooth transition. Being able to offer up secured contracts provides peace of mind for buyers that the transition will be as smooth as possible.
All it takes is one phone call to begin the preparation process and set the stage for a successful sale of your business. Let’s discuss the potential timeline for sale and how to expedite the process with organizational tips and a network of helpful professionals.
