One of the most common questions we get from sellers is, “How long will it take to sell my business?” This is one of those questions best answered with, “it depends.” I know you are looking at a more substantive answer than that so let’s take a look at what it depends on.
The single most important factor regarding the time a business is on the market is the price. Most buyers are looking at a lot of businesses for just the right one. If your business is overpriced relative to the cash flow, it will take much longer to sell, and in fact may not sell at all. The value of any business is made up of the sum of the tangible and intangible assets. The intangible ones are hard to define. Seek the help of a qualified professional when looking to value your business.
Assuming that the business is “priced right,” there is still a variability in the time it takes to find the right buyer and close the transaction. In general, the larger the business, and the more specialized it is, the longer it will take to sell.
Another factor is what is the business type? Some are in much higher demand than others.
A final consideration is location. This includes not just is it desirable, but is the location where the business operates a good one and is the price/lease appropriate?
The experience and professionalism of the intermediary (business broker) firm that you choose will also greatly affect the time on market. The national average for small businesses under $500,000 is 12 to 18 months on the market. At Emerald Coast Businesses Intermediaries, with our 25+ years of experience and detailed process, we average about 9 months for businesses in the same category. Call us and come in today for a free analysis of your business. We will answer all of your questions honestly with no obligation on your part and provide a range of value for your business for free.
The professionals at Emerald Coast Business Intermediaries can help you through the entire process!