Many business owners who are thinking of selling their business guestimate the time needed to sell to a new owner. How long will it take? Well, it depends. Many factors affect the time it takes to sell a business. Here are some statistics from the IBBA (International Business Brokers Association) from end of Q2, 2021:
Market Pulse report IBBA, First Quarter 2021 Survey
These numbers above show the average times to sell based on the size of the company, in top line revenue. These numbers show the time from putting the business on the market to end of sale.
It may take longer to sell if your business needs work prior to putting on the market. This is sometimes called “exit planning” and includes things like removing waste from processes, putting people in the right roles, having processes in place for a new owner, etc. It’s best to start looking at your business 1-2 years before putting on the market so you can make these improvements and get the most value for your business. You’ve worked hard for years to build a business, so take the time to make improvements before you may be forced to sell. Divorce, disabled, death are considered the “3 D’s” that typically force an owner to sell quickly. Don’t wait for something like this to happen.
If you need help in assessing whether your business and real estate is ready to put on the market, give us a call. We have the experience in managing businesses and knowing what buyers want. We’ll work with you to prepare your business for the sale.
Contact Agency Professionals at info@theagencypros.com or by calling 216-645-8224.