When we finally decide we are ready to sell our business, we’re ready now. We’re ready for the next chapter. We can already see ourselves in the next phase of life – retired and playing golf, sitting on a beach somewhere or onto our next entrepreneurial project – whatever the daydream is.

There’s a big problem with the desire for now in the business marketplace. It can take a really, really long time to sell your business.

Sure, there are occasions where a business lists and sells relatively quickly, but this isn’t always the case. This usually occurs when it’s a seller’s market in general – as seems to be the case in 2021. That being said, even in a seller’s market it can take a while to get to a closing table.

Why? There are basically two reasons for this. Two reasons that will require you to have patience as a seller.

First, business transactions are complicated. There are contracts and leases to be negotiated, training that needs to occur, large amounts of money changing hands, time for attorneys to review documents, financing that needs to go through a process with lenders, licensing and permitting requirements, (for some transactions) Visas that need to be processed by consulates – the list goes on and on and on. Those layers of complication can hang up deals for days, weeks or months – even with very motivated parties on both sides. If you want to be a successful seller, then you need to be mentally prepared for your deal to get hung up somewhere (or multiple times) during the process.

Second, you have to wait for the right buyer. Every business is unique, and as such it takes a buyer with a set of goals that your business uniquely fills to make a deal happen. Depending on how niche your business is, licensing requirements for a new owner, your location, the physical abilities required to run your business, etc. it can take a bit of time for you and the right buyer to connect. In a typical year it can take somewhere around 9 to 12 months to get a deal from listing to closing – so you are going to need a large dose of patience if you want to see the process through. 

It can be tempting to list your business for sale and then take your foot off the gas because you are more than ready for the next phase of your life – but this is an enormous mistake. Your business needs to look the best it can when you are trying to attract the right buyer, and it can’t look it’s best if you’ve stopped trying. Have patience, keep a focus on growth and keep your numbers strong until you actually reach the closing table.  

Are you considering selling your business and want to know how long it’s currently taking to sell a business like yours? Would you like to know more about how to attract the right buyer? Ask us! Please feel free to leave any questions or comments, we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com