Selling a business is not something you decide on a whim. Owning a business is the result of years of hard work, long hours, and figuring things out the hard way. You have built something you can be proud of, and now you are ready to talk about what is next. The question that usually comes up first is, “So, how long is this going to take?”
If the process is done right from start to finish, you are looking at about 20 weeks. That might sound like a lot, but once you see what happens during that time, it makes sense. There is a lot going on between the day you decide to sell and the day the money is in your account
1. Getting Started and Laying the Groundwork (About 3 Weeks)
The first few weeks are all about getting your ducks in a row. We work together to gather the important information such as your financial records, tax returns, contracts, leases, and the kind of day-to-day operational details buyers will want to see. We also talk about your goals. Is this about getting the highest price possible, closing quickly, finding the right buyer to carry on your legacy, or a bit of all three?
While this is happening, we create marketing materials that show your business in the best light possible. One of the most important pieces is something called a Confidential Information Memorandum, or CIM. Think of it like a brochure made for serious buyers only. It explains what your business does, how it makes money, and why it is worth their attention. A strong CIM can make a buyer sit up and pay attention.
2. Marketing Your Business to the Right Buyers (About 5 Weeks)
Once everything is ready, it is time to start showing your business to qualified buyers. This does not mean putting it on public websites for anyone to see. Instead, we approach a carefully built list of people or companies we know have the means and the interest to close the deal. That could be private equity groups, competitors in your industry who want to expand, or investors who have bought businesses like yours before.
Before we share the details, every potential buyer signs a non-disclosure agreement. During this stage, we answer questions, send over additional information when it is needed, and start gathering offers. The aim is to have more than one interested party so you can weigh your options and keep some leverage in negotiations. Competition is a good thing here.
3. Picking the Buyer and Signing the Letter of Intent (About 2 Weeks)
By this point, you should have a few offers on the table. Picking the right one is not always about the highest number. We look at how solid the buyer’s financing is, whether their track record is strong, and if their plan for the business aligns with what you want. Sometimes the right buyer is the one who will take care of your employees, customers, and reputation.
Once you have picked your preferred buyer, we work through the Letter of Intent, or LOI. This lays out the key terms such as price, payment structure, and timeline. It usually comes with an exclusivity period, which means you agree to work only with that buyer while they complete their due diligence and finalize the deal. At this point, you are officially off the market.
4. Due Diligence and Final Agreement (About 8 Weeks)
This is where the buyer takes a close look at everything. They review your financials line by line, examine your operations, check your equipment, and make sure there are no hidden surprises. It can feel a bit like having someone check every drawer and cupboard in your house before they decide to buy it.
Meanwhile, lawyers on both sides are working on the final purchase agreement. This could be a Stock Purchase Agreement or an Asset Purchase Agreement depending on the setup. Staying organized is critical at this stage. Answering questions quickly and providing documents when asked helps keep the process moving. Delays often happen when responses are slow.
5. Closing the Deal (About 2 Weeks)
Once the paperwork is signed, we are in the home stretch. The closing period is about final details such as wire transfers, clearing any debts or liens, getting approvals, and making sure the legal side is finished.
This is also when you prepare for the handoff. That might mean giving the buyer system logins, introducing them to key employees, or showing them how things run. When everything is complete, the funds are transferred, ownership changes hands, and the sale is officially closed.
The Big Picture
When you add it all up, three weeks for preparation, five for marketing, two for picking a buyer, eight for due diligence, and two for closing, you get about 20 weeks in total.
Some deals move faster if everyone is ready and motivated. Others take longer if unexpected issues come up or if negotiations get complicated. The key is to understand the process, go in prepared, and have the right people in your corner so you can get the deal done on your terms.
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