How long might it take to sell A business

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The typical timeline for selling a business ranges between six and twelve months from the initial listing to the final closing. While some highly attractive, smaller businesses might sell in under six months, larger or more complex transactions especially those in the middle market can easily stretch to ten months or even more due to intensified buyer scrutiny and detailed due diligence.

• Preparation and Valuation (1–3 months): Organizing financial records, obtaining a professional valuation and addressing operational "red flags".
• Marketing and Buyer Search (2–6 months): Creating a Confidential Information Memorandum (CIM), identifying qualified prospects and negotiating a Letter of Intent (LOI).
• Due Diligence and Closing (2–4 months): A deep dive by the buyer into the seller's legal and financial history, finalized by legal documentation and fund transfers.

• Preparation is the primary driver for the length of time required. Buyers are particularly disciplined and will penalize businesses with any discrepancies. Owners will begin to organize their business usually 18 to 24 months before even going to the market by documenting Standard Operating Procedures (SOPs) and cleaning up personal financials often secure a faster close and a higher valuation premium.