Lucido Global Business Brokers

Lucido Global Business Brokers

Adding Value, Creating Wealth

  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us

How Long Does It Take to Sell a Business?

By Rod Burns May 23

284995199_c4d0989afd_b

Photo Credit: gadl via Compfight cc

Recent studies indicate that it now takes, on average, about eight to ten months to sell a small business. This figure seems to increase yearly. Why does it take so long to sell a business?

Price and terms are the biggest reasons!  It is very important not to overprice the business at the beginning of the sales process. A business will also sell more quickly if there is a reasonable down payment with the seller carrying the balance.  Having all of the necessary information right from the beginning can also greatly reduce the time period.  Finally, being prepared for the information a buyer may want to review or having the answers available for the questions a buyer may want answered is another key.

Here is the basic information a prospective acquirer will want to review and a seller should have prepared to help facilitate a quicker sale:

Copies of the financials for the past three years.

A copy of the lease and any assignments of the lease from previous sales.

A list of the fixtures and equipment that will be included in the sale. Note: If something is not included in the sale, it is best to remove it from the premises prior to the sale or at least have a list that specifies which items are not included.

A copy of the franchise agreement, if applicable, or any agreements with suppliers or vendors.

Copies of any other documentation pertaining to the business.

Supporting documents for patents, copyrights, trademarks, etc.

Sales brochures, press releases, advertisements, menus or other sales materials.

In addition, here are some key questions that buyers may likely ask.  A prepared seller should have ready answers and information to support those answers.

Is the seller willing to train a new owner at no charge?

Are there any zoning or local restrictions that would impact the business?

Is there any pending litigation?

Are any license issues involved?

Are there any federal or state requirements, or environmental OSHA issues that could affect the business?

What about the employee situation? Are there key employees?

Are there any copyrights, secret recipes, mailing lists, etc?

What about major suppliers or vendors?

A prepared seller is a willing seller, and having the answers to the above items can significantly reduce the time it takes to sell a business.

Using the services of a professional business broker can also greatly reduce the time period.  Business brokers are knowledgeable about the current market, they know how to market a business, and they can advise a seller on price and terms.  They can also recommend professional advisors if a seller doesn’t have them already.  Using advisors who are transaction experienced can also shorten the time it takes to close the sale.

Tags: bbp Categories: Seller Articles

Prev
Next

Featured Businesses

Subscribe to our Newsletter

No worries, your information is safe with us. We hate spam too!

From Our Blog

Ownership Transition Survey Results on feedback and answers from family-owned businesses

January 20, 2021

Mass Mutual Life Insurance produced an ownership transition survey back about a decade ago.  The … Read More »

Ownership Transition Survey Results

January 15, 2021

Mass Mutual Life Insurance produced an ownership transition survey back about a decade ago.  The … Read More »

The Importance of Owner Flexibility

December 18, 2020

You shouldn’t expect to sell your company overnight.  For every company that sells quickly, there … Read More »

Getting the Most Out of Confidentiality Agreements

December 12, 2020

When it comes to buying or selling a business, there is no replacement for a solid confidentiality … Read More »

How to Optimize Your Chances of Selling Your Business

December 5, 2020

The simple fact is that selling your business is likely to be the single most important financial … Read More »

Insights from BizBuySell’s 3rd Quarter Insight Report

November 28, 2020

Most business buyers and sellers are wondering what 2021 and beyond will bring.  BizBuySell and … Read More »

Global Business Brokers

Contact Us

Lucido Global Business Brokers
Keller Williams Coral Gables
550 Biltmore Way PH II A-B
Coral Gables, FL 33134
Office (305) 662-7325
Direct (954) 913-5464
rod@globalbusinessbrokers.net

Adding Value, Creating Wealth

  • Ownership Transition Survey Results on feedback and answers from family-owned businesses
  • Ownership Transition Survey Results
  • The Importance of Owner Flexibility
  • Getting the Most Out of Confidentiality Agreements
  • How to Optimize Your Chances of Selling Your Business

Join Our Team

Copyright © 2021 Lucido Global Business Brokers
MENU
  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us