How Long Does It Take to Sell a Business?

How Long Does It Take to Sell a Business?

Recent surveys show that it takes about 8-10 months on average to sell a business. This period of time seems to be increasing every year. So, why does it take this long for a business to sell?

Overpricing and terms are biggest reasons of all. It is really necessary to make sure that the business is not overpriced, when the sale process begins. The sale time can also be reduced by having all the required information right from the start; having answers to all the questions which a potential buyer might ask and having all the information ready which a buyer can possibly ask for; is the key to quick business sale.

To facilitate a quick business sale, below is some basic information that a potential buyer will wish to review, so a seller should have it prepared.

  • Financials – for at least past three years.
  • Copy of the lease plus any assignments of the lease from previous sales.
  • A list of equipment & fixtures that will be included in the sale. Note: Before the sale, it is best to remove items from the premises which are not included in sale. At least have a list of items which are not included.
  • Franchise agreement (if applicable) or any agreements with vendors or suppliers.
  • Copy of any other document relating to the business.
  • Documents for the support of patents, copyrights, trademarks, etc.
  • Menus, advertisements, press releases, sales brochures or any other sales-related material.

Additionally, here are some main questions that a potential buyer will probably ask. A seller should have information and answers to these questions.

  • Will the seller be training the new owner, free of charge?
  • What are the local or zoning restrictions which can impact the business (if any)?
  • Is any litigation pending?
  • Are there any license issues involved?
  • Are there any state or federal requirements that might affect the business?
  • Is/are there any key employee/s?
  • Are there any secret recipes, copyrights, mailing lists, etc?
  • What/who are major vendors or suppliers?

A good seller is a willing and prepared. So, having answers ready for above questions can help to reduce the time of sale significantly.

Finally, hiring the services of professional business brokers like CBC Business Sales can speed up the sale process very much. Business brokers are currently working in the field and have knowledge about what’s going on in the market. They know how to properly advertise a business with an appropriate asking price. They can also make some recommendations which can speed up the sales process and closure of sale.

Ready to sell? Contact CBC Business Brokers Sydney today on 1300 661 498 for a free strategy session.

Contact Details:
CBC Business Brokers Sydney

Level 34, AMP Centre,
50 Bridge St,
Sydney NSW 2000

T: 1300 661 498
W: https://www.cbcbusinessbrokers.com.au/
E: info@cbcbusinessbrokers.com.au

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