How fast you sell a business depends on a number of things including the competence of your business broker San Diego. On average it takes about 6 to 11 months to sell. But why does it take this long? In this post we will be taking a look at how long each step of the sale normally takes.
The decision to sell a business is one business owners make years before they list it. The best advice you can get from business brokers San Diego is to come up with an exit strategy years in advance. By doing this you will be able to keep prepping your business for sale and know exactly when to sell. You must also remember that buyers will want to see your records for the last three years. The primary job of a business broker on the first day is to ensure your business is ready to sell and you are selling for the right reasons.
30 to 45 days: Preparing a marketing package
This involves the preparation of a marketing package. The business broker will help you compile the critical documents needed for the sale. It is also in this stage that you and your business broker will decide on who to market to and how to communicate to buyers so that your business is considered an exciting opportunity.
60 to 90 days: Finding and choosing buyers
It is after preparing the marketing package that the business broker San Diego will start marketing your business. This is done using blind ads. This stage involves finding and prequalifying buyers as well as obtaining offers.
45 to 90 days: Due diligence and loan approval
Due diligence and loan approval takes between 45 and 90 days. The business broker helps negotiate the best terms for due diligence. The time this stage takes depends on the financing required as well as the type of buyer you are working with.
15 to 30 days: Schedule closing
After due diligence, if the buyer still wants to purchase the business the business broker San Diego will go ahead and schedule closing. This happens after the lender, if any, has received the required documents.
30 to 90 days: Consultation and training
The final stage after closing is to train the new owner. Offering to stay on after sale is an incentive that helps win over buyers and speeds up the sale. Training and consultation normally takes 30 to 90 days. Your business broker can help negotiate better terms.
All things considered, when everything goes perfectly, it takes about 180 to 330 days to sell a business. The competence and strategy used by your business brokers San Diego is, however, what determines how fast you sell.