If you’re planning on selling your business and wondering how long the sale is likely to take, it really depends on the circumstances. And, while individual times may vary, most business owners should expect six to nine months between signing a listing agreement and closing. However, certain things can affect the length of a business sale. The following factors will have a direct impact on the time it takes to sell your business:
State of the market
To remain competitive in a seller’s market, you must value your business realistically and continue to operate to maximize profitability. Look at your business objectively and judge whether or not it’s healthy enough to start the sales process. If it’s not, you may be better off sticking around, tweaking your business plan, and trying to develop it before you leave—you’ll only be a winner in the eventual sale.
Preparation for the sale
The time and effort you put into preparing to sell your business can affect the interest of potential buyers. Be prepared to invest a fair amount of your time or hire a professional to help you put the following documentation in order:
- Financial records
- Legal information
- Communications and government-related documents
- Employee information
- Information on your market, your sales, your customers or your marketing plans
The more you project the image of a business in full possession of its means, the more attractive it will be to potential buyers.
The asking price
The price you ask for your business may attract or repel potential buyers. Work with an expert in business sales to come up with a selling price that will allow you to position yourself serious in your intentions and allow you to finalize the sales process with a positive outcome.
For more advice and information on selling your business, contact the Mergex team today.
