How long does it take to sell a business?

Owners usually expect a sale to take longer than it does in the marketing phase and less time than it does in the legal phase. In practice, six to twelve months from mandate to completion is a realistic range for a well-prepared owner-managed business.

The first phase is preparation, typically four to eight weeks. This covers valuation, normalising the accounts, writing the information memorandum and agreeing the buyer strategy. Time spent here is rarely wasted, because it prevents delays later.

Marketing and buyer engagement usually runs six to twelve weeks. Buyers sign NDAs, receive information, and meetings follow. The quality of preparation shows up here: an incomplete data pack slows everything.

Heads of terms are then agreed, which can take two to four weeks of negotiation. This document sets price, structure and exclusivity, and it is worth being patient over rather than rushing.

Due diligence and legals are the longest stretch, commonly eight to sixteen weeks. Financial, legal and commercial diligence run in parallel with the sale and purchase agreement. Missing records, unresolved disputes or unclear ownership of assets are the most common causes of drift.

Two things reliably shorten the timetable: preparing your information before going to market, and choosing a buyer with funding already in place. Two things reliably lengthen it: surprises in diligence, and an owner who is too busy running the business to answer questions quickly.