How long will it take

We often get asked ‘how long does it take to sell a business?’  The diagram below outlines key steps and potential time frames for a full sale process.  Of course, you may already know the buyer and therefore your process may be quite different, e.g. purely focussed on execution if your already know the buyer. 

 

A well run process will be the ideal balance of minimising time taken and maximising outcomes for every Owner
 

In practice, the length of time taken depends on many factors such how well the process is run, plus the individual circumstances of the business, its Owner(s) and the buyers.  It is important to note that speed of the process is just one factor in a successful sale and ideally speed of process won't come at the expense of the quality of the outcome for the Owner(s).

 

Preparation	Marketing	Execution
Preparing an information pack that professionally and credibly represents the business; highlighting the strengths of the business and full value.	Engaging with qualified buyers and assessing initial interest (ideally obtaining indicative offers)	Proceeding with preferred offer and buyer and concluding a deal (i.e. sign a sale and purchase agreement and settle transaction)
2 to 4 weeks	2 to 4 weeks	4 to 8 weeks
INFLUENCING FACTORS (not limited to):
Your readiness and intention to sell Understanding of competitive advantage Quality and presentation of existing information, e.g.: Historical information Current management accounts Budget / forecast information Promotional material (incl. branding and photos) Management availability Professionalism and technical knowledge of broker	Practical availability of buyers Existing knowledge of buyers and their relationship with the business Personal contact with buyers Negotiation skills Competitive tension / appeal of the opportunity Knowledge and experience of broker	Decision making process for the buyer (including information required) Other activities and existing priorities for buyer Quality of due diligence materials / process Knowledge, experience and professionalism of broker / project manager Quality of advisors (incl. accounting and legal) for both sides Evolution of key milestones underpinning business value Ability to manage landmines!
Total 3 to 6 months

 

Talk to us about a timeframe that will work for you.