How Long Does It Take to Sell a Business?

Understanding timelines, phases, and factors that affect your business sale duration

Get Timeline Assessment

Typical Sale Timeline

Average Business Sale Duration: 6-18 Months

Under $1M

4-8 months typical

$1M - $5M

6-12 months typical

$5M - $25M

9-18 months typical

$25M+

12-24+ months

These timelines include preparation, marketing, negotiation, and closing phases. Your specific timeline may vary based on business complexity, market conditions, and readiness.

Sale Process Phase Timeline

Preparation Phase

2-6 months

Key Activities

• Business valuation and assessment
• Financial record organization
• Legal document preparation
• Operations improvement
• Advisory team assembly
• Confidentiality agreements

Duration Factors

• Quality of existing records
• Need for business improvements
• Legal complexity
• Advisory team availability
• Owner preparation time

Marketing Phase

2-4 months

Key Activities

• Marketing materials creation
• Buyer identification and outreach
• Initial buyer screening
• Information memorandum distribution
• Management presentations
• Initial offer solicitation

Duration Factors

• Market demand for your industry
• Business attractiveness
• Buyer pool size
• Confidentiality requirements
• Marketing approach chosen

Negotiation Phase

1-3 months

Key Activities

• Offer evaluation and comparison
• Letter of intent negotiation
• Term sheet finalization
• Exclusivity agreements
• Deal structure optimization
• Preliminary agreement signing

Duration Factors

• Number of competing offers
• Deal complexity
• Buyer financing requirements
• Negotiation dynamics
• Legal and tax considerations

Due Diligence & Closing

2-6 months

Key Activities

• Comprehensive due diligence
• Purchase agreement drafting
• Financing approval process
• Regulatory approvals
• Final document execution
• Asset/share transfer

Duration Factors

• Business complexity
• Financing requirements
• Regulatory approvals needed
• Due diligence findings
• Document negotiation time

Factors That Affect Sale Timeline

Factors That Speed Up Sales

Business Readiness

• Clean, organized financial records
• Strong management team in place
• Well-documented processes
• Recent financial audits

Market Conditions

• High buyer demand
• Favorable financing environment
• Industry growth trends
• Multiple interested parties

Deal Structure

• Cash transactions
• Strategic buyers (vs. financial)
• Simple deal structures
• No regulatory issues

Factors That Slow Down Sales

Business Issues

• Poor financial record keeping
• High owner dependency
• Customer concentration risks
• Declining performance

Market Challenges

• Limited buyer interest
• Tight credit markets
• Industry downturns
• Economic uncertainty

Deal Complexity

• Complex financing structures
• Regulatory approvals required
• Multiple locations/entities
• Environmental issues

Timeline Variations by Industry

Industry	Typical Timeline	Key Factors
Technology/SaaS	6-12 months	High buyer interest, complex IP
Manufacturing	9-18 months	Asset complexity, environmental
Healthcare/Medical	6-15 months	Regulatory compliance, licensing
Professional Services	4-10 months	Client transition, key personnel
Retail/E-commerce	6-12 months	Inventory, lease transfers
Construction	8-15 months	Project completion, equipment

Common Causes of Delays

Documentation Issues

• Missing financial records
• Incomplete legal documents
• Tax compliance problems
• Unclear ownership structure
• Intellectual property gaps

Can add 2-6 months to timeline

Due Diligence Surprises

• Undisclosed liabilities
• Customer concentration issues
• Key employee dependencies
• Operational weaknesses
• Regulatory compliance gaps

Can add 1-4 months to timeline

Financing Challenges

• SBA loan processing delays
• Bank underwriting issues
• Appraisal discrepancies
• Buyer qualification problems
• Changed financial conditions

Can add 1-3 months to timeline

Tips to Accelerate Your Sale

Before Going to Market

Complete thorough preparation before marketing
Organize all financial and legal documentation
Address known issues proactively
Get professional valuation early
Assemble advisory team in advance

During the Sale Process

Respond quickly to buyer requests
Maintain business performance and focus
Be flexible on deal structure
Work with experienced advisors
Set realistic expectations early

Ready to Start Your Sale Timeline?

Get a personalized timeline assessment based on your business and industry specifics

Get Timeline Assessment See Preparation Checklist