How long it takes to sell a business varies depending on several factors, and it’s a question we frequently receive from our clients as business advisors and brokers. To expedite the potential sale of your business, certain steps should be taken. First and foremost, it’s crucial to ensure your financial statements are up-to-date and accurate. Maintaining meticulous financial records from day one and having regular contact with your CPA is essential. Merely having sporadic phone contact with your CPA will not adequately prepare you for a quick and seamless sale.  Monthly bookkeeping and reconciliations will position your business to attract the highest possible offers.

While it’s vital to work closely with an accountant, you should also be capable of generating reports for your monthly profit and loss statements, balance sheets and other financial documents.  Keeping an accurate summary of your revenue versus expenses is similar to managing your home finance—it’s an ongoing process.

Selling a Business Takes Time to Do Right

Many small business owners desire to close a deal quickly once they decide to sell. However, experience has shown that selling a business generally takes at least six to nine months, a timeline that most owners don’t anticipate.  In fact, a survey found that nearly half of business owners (44 percent) believed the entire sales process would be completed in less than five months.  However, most advisors typically disagree with this timeline and advise sellers to set their expectations for a timeframe of six to 11 months.

It’s crucial to consider the role of your CPA or CFO. Hiring professionals to manage your books and provide sound financial advice is highly recommended.  When potential buyers review your books, transparency and accuracy are essential. Any irregular entries should be explained upfront and honesty is crucial.

Now, let’s address the question: “How long will it take to sell a business?” As a business owner, you will have a meeting with our team at Bravo Kilo Advisors to get to know each other.  You will share your story and we will do the same.  If there is chemistry and we are impressed with your financials, we can usually provide a valuation within a couple of weeks or sooner after the initial meeting.  We then move forward with drafting a listing agreement to initiate the marketing process, valuation and terms of the sale.

Your company will be listed on various business listing websites and we will share your company information with our network of private equity groups and private investors. We carefully vet potential buyers to ensure they are a good fit. If there is mutual interest, further analysis takes place. After a detailed review, an offer or letter of intent (LOI) is typically presented. Following approximately 30 days of due diligence, there will be follow-up meetings involving you, the prospective buyer(s), attorneys and bankers to finalize the transaction with an Asset Purchase Agreement, which is a binding contract to sell. While luck and good timing can occasionally lead to a faster closing, expediting the purchase is usually not feasible. Therefore, sellers must be prepared for a lengthy process before even listing their business on the market.

At Bravo Kilo Advisors, our team has experience from the initial meeting to closing the transaction.  We work diligently with your best interests at heart. The entire process, from the initial discovery meeting to due diligence and completion of the transaction, typically takes around 6-9 months.  Most importantly, we only get paid when you receive a check from the buyer.