| Time Period | % of
Businesses Sold |
| 1-3 Months | 9.7% |
| 4-6 Months | 28.3% |
| 7-9 Months | 38% |
| 10-12 Months | 15.9% |
| 13-18 Months | 7.6% |
| 19+ Months | 0.7% |
Selling A Business - How long does it take?
The average time on the market for around 82% of businesses is 4 to 12 months. Fewer than 10% of businesses sell more quickly, and a little over 8% are on the market for more than 12 months.
Why does it take so long to sell a business?Price and terms are the biggest reasons. Not overpricing the business, partial owner financing, and an owner training period are factors that are attractive to prospective buyers and can lead to a more timely sale.
Preparation for the information a buyer may want to review, and having answers to the questions they will ask is key. Using advisors who are transaction-experienced can also shorten the time it takes to close the sale.
Items for buyers review- Copies of the financials for the past three years.
- A list of furniture, fixtures and equipment included in the sale.
Note: try to remove excluded items prior to the sale, or list items excluded from
the deal separately. - Copies of any other documentation pertaining to the business.
- Sales brochures, press releases, advertisements, menus or other sales
materials. - A copy of the lease and any assignments of the lease from previous sales.
- A copy of the franchise agreement (if applicable) or any agreements with
suppliers or vendors. - Supporting documents for patents, copyrights, trademarks, etc.
Typical buyer questions- Is the seller willing to train a new owner at no charge?
- Is there any pending litigation?
- Are there any federal, state, or environmental issues of concern?
- Are there any copyrights, secret recipes, mailing lists, etc?
- Customer levels and concentration of customers?
- Are there any zoning or local restrictions that would impact the
business? - Are any license or permit issues involved?
- What about the employee situation? Are there key employees?
- What about major suppliers or vendors?
- What can be done to grow the business?
This information was provided by Rose Stabler, Managing Partner at
Certified Business Brokers in Houston, Texas.
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