Length of business sale process

There is no set time for how long it will take to complete the sale of a business. This is determined by a multitude of variables such as how desirable your business is and therefore how long it will take to find someone wanting to purchase it, how quickly you can agree on price and other terms, and whether the due diligence procedure highlights any issues. However, you should be prepared for the fact that selling a business is often a lengthy process and typically takes upwards of six months to complete. In rare Cases few Businesses gets sold under 60 days provided if the following things are practical , the Asking Price, Documented P&L, No Liabilities on the Business and Assisted by an EXPERT BUSINESS BROKERS.

If not, you should not be surprised if it takes anywhere between six and 12 months for the deal to go through. Having realistic expectations of how long the process could go on for could save you frustration and disappointment further down the line.

While a sale could stall for many reasons and at any stage in the process, there are certain things you can do to help it move as quickly as possible. Before putting the business up for sale, it is advisable to spend some time collating the financial information of the company, such as previous accounts and cash flow statements; these documents will be needed during any sales negotiation so it makes sense to have these available and ready.

One of the most time consuming parts of this business is finding someone who not only wants to buy your business, but someone who is also in the position of actually being able to do so. Enlisting the help of an adviser could help to speed up this aspect of the process considerably. An experienced adviser will have a database of potential buyers and will know the best ones to contact who may be looking to purchase your kind of business.

Preparing your business for sale

When it comes to selling anything, be it a house, a car, or any other personal possession, you want it to be in the best condition possible in order to maximize your returns. Selling a business is no different. While sales preparation may not ultimately increase the value of your business, it may well increase the attractiveness of it to potential buyers. Here are some things you can do to get your business in top selling condition:

1. Get your financial affairs in order – It is inevitable at some point of the sales process that a buyer will want to scrutinize the financials of your company before deciding whether it is a worthwhile investment so getting this prepared early will not only save you time in the long-run, but being able to provide this information in a timely manner will also be appreciated by your prospective buyer.
2. Appearances matter – If you operate from a fixed premise, make it look as attractive as possible. Give the place a lick of paint, fix weathered signage, and consider updating any antiquated machinery.
3. Get a trustworthy valuation – Knowing how much your business is worth and working out your expectations can ensure you are pitching your business to the correct sort of potential buyers.
4. BUSINESS BROKERS– a BUSINESS BROKER will cost you; however, chosen correctly, the right adviser could prove to be extremely valuable. Selling can be a very stressful time, particularly when you still need to remain focused on running the business to the best of your ability. An adviser can help take the stress out of the process by marketing your business to genuine interested parties, handling the negotiations, and overseeing the legal aspects of the sale.

While selling a business is typically a lengthy process, employing the services of an adviser could see you completing on the sale quicker than if you went it alone. Often the most time-consuming part of selling a business is finding the correct buyer. However, an experienced adviser will already have a database of potential buyers lined up and will know exactly how to market your business to them in the most effective way.

Conducting a company valuation to establish market value

Valuing a business is notoriously difficult. While some companies will be happy to put a value on your business based on generalizations such as the sector you work in, it is only through a thorough examination of your specific business that an accurate valuation can be given. While your current and historic financial performance, the sale prices of other comparable businesses, and the health of the industry you operate in, can lead to a valuation being given, you should always bear in mind that a valuation is just an estimate; the true value of your business is ultimately decided by the buyer.

While receiving a high valuation for your business may well be flattering, it is important to have realistic expectations of what your business could hope to achieve. By placing your business on the market at an inflated price could deter those who would be interesting in purchasing for a more realistic price, and could also lead to disappointment when you inevitably have to lower your expectations to complete on a sale

Benefits of using a BUSINESS BROKER

When selling your business, you can either arrange the entire sale yourself or you can enlist the help of a Professional BUSINESS BROKER. You need to decide which the best option is for you and your business by weighing up the pros and cons of each approach.

1. VALUE ADDITION : A BUSINESS BROKER will cost you; however, chosen correctly, the right adviser could prove to be extremely valuable. Selling can be a very stressful time, particularly when you still need to remain focused on running the business to the best of your ability. An adviser can help take the stress out of the process by marketing your business to genuine interested parties, handling the negotiations, and overseeing the legal aspects of the sale.
2. QUICK DEAL: While selling a business is typically a lengthy process, employing the services of a BUSINESS BROKER could see you completing on the sale quicker than if you went it alone. Often the most time-consuming part of selling a business is finding the correct buyer. However, an experienced adviser will already have a database of potential buyers lined up and will know exactly how to market your business to them in the most effective way.
3. GREAT APPRAISAL : As selling your business is something which is vitally important to get right, you may instead wish to consider enlisting the help of a BUSINESS BROKER. The BUSINESS BROKER can help you when it comes to setting a realistic selling price, negotiating with potential buyers, and dealing with the legal aspects of the sale.

Business valuation is the process of determining the fair market value of a business, or in simple terms, the true worth of a business.

For Sale by Owner (FSBO) is a method of selling a business without the use of a business broker. Small business owners may employ online listing/advertising services to market their own business but do not pay a commission and represent themselves without the help of a business broker throughout the sale. BIZBAZAAR has designed BASIC LISTING (DIY) for those owners who wish to SELL BUSINESS without the help of BUSINESS BROKERS.

If you are able to plan your exit from the business over a period of time we would advise that you make the business as profitable as it can be, this will help to increase the value of the business. Other things which are much simpler will help us to get the best price such as ensuring things are kept clean and tidy when photos are being taken or when viewings are taking place. Additionally it’s a good idea to ensure that everything in your business is in order and being fully utilized, for example social media, customer reviews, processes and procedures. Think as a buyer would do and try to cover off everything you would expect to find as a buyer.

It’s never our intention to send buyers to you who are not serious. We obtain their contact details and ask them questions about their experience in business and ability to purchase the business from a financial point of view. We take this information in good faith and will relay this information to you. We will also ask purchasers to be ready to provide their proof of funds in conjunction with an offer.

Unrealistic valuation is one of the major reasons why good deals fall out

Get what you deserve in a transaction by knowing the real worth of your business

Quote realistic valuation for higher chances of gaining buyer/investor confidence