How Long Does It Take to Sell a Business?

 

How long Does It Take to Sell a Business:

Selling a business isn’t something that happens overnight. Whether you’re preparing for retirement, planning a strategic exit, or moving toward your next venture, understanding the timeline helps manage expectations and avoid unnecessary delays.

On average, selling a business takes 6–12 months, though some deals close sooner and more complex transactions can take over a year. Below is a breakdown of each phase in the selling process — and what affects how long it takes.

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📅 Typical Timeline to Sell a Business: 6–12 Months

Every business is different, but most sales follow this general structure:

• Preparation: 1–3 months

• Marketing & Buyer Search: 1–4 months

• Negotiations & LOI: 1–3 months

• Due Diligence: 1–3 months

• Final Contracting & Closing: 2–8 weeks

Let’s take a closer look at each stage.

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🧾1. Preparation Stage (1–3 Months)

Preparation is often the most important part of the entire process. Strong preparation shortens the timeline, while weak preparation can extend the sale significantly.

What Happens in This Phase

• Organizing financial statements (3–5 years)

• Normalizing earnings (SDE / EBITDA add-backs)

• Completing a business valuation

• Preparing a Confidential Information Memorandum (CIM)

• Cleaning up operations, contracts, and documentation

Why This Stage Matters

Buyers move quickly when they see clean and credible financials. Preparation directly impacts how many offers you receive — and how quickly they arrive.

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📢2. Marketing & Buyer Outreach (1–4 Months)

Once your business is ready for the market, the next step is attracting qualified buyers. The timeline varies depending on industry and deal size.

What Happens During Marketing

• Creating a blind listing (public-facing but confidential)

• Distributing the opportunity to screened buyers

• Handling inquiries and executing NDAs

• Sharing CIM with vetted buyers

What Influences the Speed

• Industry demand — high-demand sectors sell faster

• Deal size — smaller businesses typically attract more buyers

• Quality of marketing materials — strong positioning reduces friction

Some small businesses begin receiving inquiries within days, while mid-market or niche companies often require targeted outreach strategies.

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🤝3. Buyer Meetings & Negotiations (1–3 Months)

This is when serious buyers begin evaluating the opportunity and negotiations become more detailed.

What This Stage Includes

• Introductory calls and Q&A sessions

• Site visits or management meetings

• Reviewing financials under NDA

• Receiving and negotiating Letters of Intent (LOIs)

Why This Stage May Take Longer

Buyers assess whether the business aligns with their goals, financing options, and operational capabilities. Complex deal structures — such as earn-outs or seller financing — can extend negotiations.

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🔍4. Due Diligence (1–3 Months)

Due diligence is typically the most intensive stage and can significantly impact the timeline.

Due Diligence Usually Covers

• Financial audits

• Legal contract review

• Operational performance analysis

• Tax review

• Customer and supplier verification

Common Causes of Delay

• Missing or disorganized documentation

• Customer concentration concerns

• Regulated industries (healthcare, manufacturing, financial services)

• Unresolved legal or tax matters

Being organized and responsive keeps this phase moving efficiently.

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📝5. Final Contracting & Closing (2–8 Weeks)

Once due diligence is completed, the process moves toward final closing.

What Happens Next

• Drafting and negotiating the purchase agreement

• Securing buyer financing (such as SBA loans)

• Finalizing asset allocation and working capital adjustments

• Setting escrow arrangements

• Transition planning and closing documentation

Possible Delays

• SBA financing approval

• Landlord approvals for lease transfers

• Last-minute diligence findings

When both parties are aligned, this stage can move quickly.

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⚡What Speeds Up a Business Sale?

• Clean, well-organized financial records

• A realistic asking price

• Strong and stable cash flow

• Documentation prepared before going to market

• Owners not essential to daily operations

• Working with an experienced business broker or M&A advisor

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🚧 What Slows Down a Business Sale?

• Poor bookkeeping or missing documents

• Customer concentration risks

• Declining sales trends

• Legal or tax complications

• Financing obstacles

• Overpricing the business

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💡So… How Long Will Your Business Take to Sell?

While the average timeline is 6–12 months, every business is unique. The best way to shorten the process is to prepare thoroughly before listing and work with experienced professionals who can guide you through the transaction.

At The CBA Group, we help business owners and buyers navigate the process of selling or purchasing a business with confidence. Our team of experienced professionals provides guidance through valuation, marketing, negotiations, due diligence, and closing — ensuring every step is handled strategically and smoothly.

Whether you’re planning to sell, buy, or simply explore your options, The CBA Group and Michael Norman are here to support you and help you achieve your goals.