If you are considering selling your business, you may be wondering how long the process takes. While there is no single answer, most business owners can anticipate a process that can take an average of six to twelve months under normal conditions. However, some things affect the length of the process. In this article, we answer the question: How long can it take you to sell your Business? and we share 4 tips for a successful and profitable sale.
4 things that impact the time it takes to sell a business
The process of selling your business can be exhausting. How desirable your business is to potential buyers depends on the current market and a variety of factors specific to your business and your industry. Prospective buyers will want to address any potential issues that may come up in the buying process. If you're ready to sell your business, the good news is that there are ways to speed up the amount of time it takes to settle. Before putting your business up for sale, consider these factors:
1. State of the Market
The market for sellers has changed as a result of COVID-19. To remain competitive, you must be realistic about the value of your business and continue to operate and pivot your business to remain profitable. The details of your industry also come into play. If your business has already recovered from the effects of the pandemic, you are likely in a better position for potential buyers. Ultimately, you must decide if your business is healthy enough to be attractive to a potential buyer right now. If not, you'd better stay put, modify your business plan, and try to grow it and create value before you leave.
2. Business Preparation
The time and effort that you put into preparing your business for sale has an impact on the price you will ultimately earn for your business. Key documents, including clear cash flow records, verifiable finances, and audited financial statements are a non-negotiable requirement for any serious buyer. Small details matter too; Consider the attractiveness of your business and how buyers will feel as they walk into the business and evaluate the business. Also, prepare your exit strategy. Determine how you will facilitate the transfer of the business and guide the new owner to success. You should prepare for the buyer to ask you to stay with the business for a while to help them take control of the business.
Properly promoting your sale ad can make the difference in reaching a pool of qualified buyers or waiting months. Online marketplaces are a great place to start in some countries, but to ensure confidentiality is maintained and your business is displayed to qualified buyers, it is often best to work with a professional business advisor who will help you properly promote your business. company depending on the characteristics of it.
Last but not least, the sale price of your business can either attract buyers or drive them away. Don't let your emotional attachment to what you've built up after so long to cloud your judgment. Working with a company, expert in buying and selling businesses, and making a formal appraisal of your business as part of the process, can guarantee a reasonable and fair sale price, which will surely shorten the time of negotiations and speed up the process of sale.
Although average time to sell can vary on a case-by-case basis depending on the type of business, your industry, and the specific circumstances of your business, these 4 factors make a significant difference in how long it might take you to sell your business. The good news is that you don't have to go through the process alone. At Sunbelt Central America we have the experience and business advisors with the knowledge and desire to help you every step of the way to a successful sale.
Source: Sunbelt Business Brokers