I am often asked by prospective clients how long it will take to sell their company. The short answer is an average of four to eight months. Shows like Shark Tank tend to oversimplify the process because they don’t show is the rather lengthy time required for the Buyer to complete their due diligence, which can often take a couple of months.

The fastest ASG has ever sold a company was 42 days. That client answered every question we had within a couple hours, and the very first potential buyer to respond to the opportunity returned a Letter of Interest within a few days. There were no hiccups, and everything flowed smoothly. Compare this with another transaction that closed last year, which was five years in the making!

There are things a Seller can do to make the entire process go more smoothly.

Tip #1: Fast Turn Around Makes a Difference

First, the quicker the Seller can respond to questions from buyers with accurate information, the better. This is true throughout the entire process, from providing information for the initial valuation, to being available for a meeting to learn about the company that provides the background for the marketing materials, all the way through answering potential buyers’ questions quickly and fully.

Tip #2: Preparation Adds Credibility

Second, having all the corporate ducks in a row before going to market can help reduce some of a potential buyer’s perception of risk about buying your business. When we were recently able to hand over all the corporate documents and company financials on day one of due diligence, it showed a level of efficiency and put our client on a strong footing. If you are even thinking of selling, make sure all the corporate minutes and filings are up to date and completely and readily accessible.

Tip #3: Keep Your Focus on the Bottom Line

Last but not least, keep your foot on the gas. Even though it will take time and mental energy to have your business on the market and throughout due diligence, make sure you don’t neglect your responsibilities. If the numbers start to sag, any potential buyer will see a huge red flag. This has killed more than one deal. You will have all the time in the world AFTER the deal closes to check out of your business.
While many things are outside of the seller’s control, these three things can make a big difference in reducing the amount of time between deciding to sell and receiving the big check.