This is a question we receive all the time, how long does it take to sell a business? The short answer, it varies. It varies on a lot of factors such as seller’s time frame to sell, business type, price, and industry.
When we meet with clients who are thinking about selling there business, we try and find out why they want to sell. This information provides a lot of insight to what type of marketing plan we should develop for the client. For example, it the client is having health issues, then they more than likely will want to sell as quickly as possible. If the client wants to retire in a couple years, then they more than likely have more time to sell.
Based on the information above, the same exact company could sell in two different time frames. If the business valuation was $5,000,000, for the client with health issues, we may recommend a listing price of $3,950,000 to try and complete a sale in 4-6 months. But for the second client, who is not in a rush, we may suggest a listing price of $6,490,000 to try and sell in 6-18 months.
A good business broker should provide you options. Here at Texas Business Brokers, we provide three different types of marketing plans to all our clients so they can decide what is best for them. We also us analytics from each listing to determine if we are on track for the desired time frame to sell. This data, if analysed correctly, can provide critical insight on how the listing is performing.
Please contact us if you have any questions or want to learn more. – Wishing you the best, Alex Khabbaz, Managing Partner and Austin Business Broker for Texas Business Brokers.