RIght after a potential business seller asks how much we charge, the next question in invariably, “How long does it take to sell my business?”
If your business is profitable and has good business records… you have financial statements with matching business tax returns, then It generally takes, on average, between five to eight months to sell a business. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the premise that they can always come down in price, overprice their business for sale. This theory often “backfires,” because buyers often will refuse to look at an overpriced business. Terms are just as important as quality records. Few all cash transactions occur. Meaning that we find a buyer that readily writes a check for the full purchase price. When we do find a “cash” buyer, they will demand a steep discount. But, more than likely a business seller will be asked to carry a portion of the purchase price. A transaction with a seller note also tells a potential buyer that the seller has confidence in the business’s ability to make the payments.
If you are thinking about selling a business, you should contact a business broker. Call us today for a confidential business valuation. We sell businesses! 1-800-Biz-Broker