How fast can I sell my business?
Many factors determine the length of time it takes to sell a business, such as industry, size, economic conditions, consumer demand, regulatory and tax changes, interest rates, access to professional expertise, and preparation. While there are factors outside of your control, there are steps you can take to sell your business quickly and without delay.
How to sell a business quickly
The industry and size of the business will largely determine the average time it takes to sell a business. A business with large employee numbers may appeal to a smaller pool of potential buyers with a high-risk appetite, and therefore, may take longer to sell.
A business operating in a niche market may require specialist support from an experienced business transfer agent to target a less populated industry. Therefore, it can take time to find a buyer ready to proceed, which is where a well-connected business transfer agent can prove to be a worthwhile investment.
Here are some factors that influence how fast a business can sell:
Economic conditions – The rate at which businesses sell is directly linked to economic conditions. A buoyant economy attracts investment, stimulates growth, and drives demand in the business sales market, which can encourage faster sale. If economic conditions are poor, such as high interest rates, this can slow down activity in the business sale market as borrowing can be expensive.
Consumer demand – The popularity of a business can be influenced by trends and consumer demand, which could encourage a faster sale.
Regulatory and tax changes – If changes to industry regulations or tax rules are fast approaching, a business sale may be fast-tracked to minimise the impact of rule changes and maximise tax savings.
Preparation – Preparation is essential to the business sale process as it speeds up administrative tasks and helps avoid procedural delays. Your appointed business transfer agent will advise you on the information to collate and documents to prepare to support the business sale and valuation process.
A reputable business transfer agent will usually liaise directly with your accountant to request financial records, such as company accounts, trading forecasts, and asset register, to speed up the sale of your business.
- Previous sales and acquisitions experience
- Sector specialisms and average success rate
- Sales value expectations and growth potential
What’s a realistic timeframe for selling a business?
When putting your business up for sale, you may have a timeframe in mind. While buying patterns and trends can influence the speed of a business sale, the industry and the nature of your business will impact the timeframe for selling a business.
We have years of experience in selling businesses, so we’re able to advise on a realistic timeline; however, you must consider key areas that can influence how fast a business sells:
On-market or off-market sale? If you sell your business off-market as you have a private buyer, the sale process is likely to be faster, as this cuts out the buyer search. While an on-market sale can be fast, the business must be marketed and a buyer sought, which takes time.
Industry high or low? If you are selling your business at a time when the industry is thriving and profits are at an all-time high, this could prove to be a lucrative opportunity for buyers. If the industry is performing poorly and hard hit by low demand, buyers may hold off until they see an uptick in demand.
Sale price – Does the sale price accurately reflect the market value of the business? A business valuation can help determine the sale price, which must reflect the true worth of the company. If the sale price is inflated, this could deter enquiries from buyers.
Established business broker – Appointing a well-connected broker is crucial when searching for a buyer for your business. A business transfer agent with a wealth of connections can put your business in front of suitable buyers that are ready to proceed.
A targeted approach is essential when selling a business to ensure a fast and seamless sale. From timing the sale of your business to appointing a reputable business transfer agent, there are steps you can take to speed up the sale of your business.
How can Selling My Business help?
The Selling My Business team are integral to a fast business sale as they will expertly guide you through each stage of the process. From advising business sellers on preparing their business for sale to arranging a business valuation, the Selling My Business team are on hand each step of the way to ensure the sale is progressing.
For professional advice on how to sell a business quickly and the timeframe to expect, speak with a member of the Selling My Business team. Founded in 1956, we have a wealth of knowledge that can help speed up the sale of a business through effective marketing. From creating a model listing to promoting your business on all the right platforms, we can help sell a business fast.
