Selling A Business: How Long Does it Take?

A recent survey revealed the following about the length of time that selling a business requires:

Average time from putting the business on the market to time of sale:

Time Period % of Businesses Sold in This Time Period
1 to 3 Months 9.7 %
4 to 6 Months 28.3%
7 to 9 Months 38.0%
10 to 12 Months 15.9%
13 to 18 Months 7.6%
19 + Months 0.7%

It took from four to 12 months to sell approximately 82 percent of businesses, with 38 percent falling into the seven- to nine-month range. Certainly some businesses sell more quickly, but at the other end of the spectrum, over eight percent are on the market for over 12 months.

Why does it take so long to sell a business? Price and terms are the biggest reasons. Not over-pricing the business at the beginning of the sales process is a big plus, as well as a transaction structured to include a reasonable down payment with the seller carrying the balance. Having all of the necessary information right from the beginning can also greatly reduce the time period. Being prepared for the information a buyer may want to review or having the answers available for the questions a buyer may want answered is the key.

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