Selling a business is often a complex, multifaceted process that can be overwhelming for those who are unprepared. It involves more than simply finding a potential buyer and signing on the dotted line. This is even more true if you find yourself in a situation in which you need to sell your business quickly.
This comprehensive guide provides a roadmap to the process, offering practical advice and actionable steps to ensure a smooth and speedy sale. But it’s just a guide. As you navigate the ins and outs of the business selling process, you may find that you need more — a true partner to walk you through the process every step of the way.
How to Sell a Business Quickly
Your intent and reasons for selling your business play a pivotal role in the process and can significantly influence your decisions. Whether you’re selling to pursue a new business venture, retiring, or mitigating risk from a volatile market, your motivations will guide the speed, pricing, and negotiation strategies. For instance, a need for a swift sale may warrant a lower asking price and a more aggressive marketing approach.
Understanding your reasons for selling allows for a strategic, targeted approach, ensuring the process aligns with your objectives and timelines.
| How long does it take to sell a business? On average, it takes six to twelve months to sell a business — but it varies tremendously based on industry. Tech and internet companies sell the fastest; construction companies, the slowest. At NIN, we typically sell a business within 90 to 180 days, much faster than industry standard. |
Financial preparation is a critical part of the selling process that can directly impact your business’s value, the speed of the sale, and the interest of potential buyers. Before you enter the market, it’s crucial to have a firm grasp of your business’s financial health and to present this information accurately and professionally.
Many business owners – especially small business owners – might find that they need to go over their books before selling their business. This is often due to informal accounting practices, lack of documentation, or realization of discrepancies in the financial records — discrepancies that may not matter day to day, but will matter when other parties are looking into them. Having clean, organized, and accurate financial statements not only boosts buyer confidence but also facilitates a smoother due diligence process.
Moreover, a thorough financial review may expose areas for improvement that could increase your business’s profitability, and hence its market value, before the sale. This could mean anything from cutting unnecessary expenses to optimizing operational efficiencies. Remember, the better your financials look, the more attractive your business will be to potential buyers.
Part 2: Finding the Right Buyer
While the urge to sell your business quickly might tempt you to accept the first offer that comes your way, it’s crucial to remember that not all buyers are created equal. The right buyer isn’t just someone who’s willing to pay your asking price; they’re someone who recognizes the true value of your business and has the financial capability to pay for it.
Finding the right buyer often requires a strategic approach to marketing, where your business is positioned in a way that appeals to the most suitable buyers and the right target audience. The key is to understand what these potential buyers are looking for and highlight those aspects in your marketing materials and discussions.
Our sales team works with an exclusive pool of qualified buyer candidates to find the right interested buyer for you.
A suitable buyer will understand the industry, has a clear plan for the future of the business, and most importantly, is financially ready to make the purchase.And they’ll be willing to accelerate the sale process to meet your goals. In the long run, holding out for the right buyer could mean a higher selling price, better terms, and the peace of mind knowing that your business is in good hands.
While finding the right buyer may take time, the potential financial and emotional rewards make it worth the effort. Remember, it’s not just about selling quickly; it’s about selling to someone who understands and respects the true value of your business.
Part 3: The Selling Process
Engaging a business consultancy during the selling process can be invaluable. Experienced consultants offer a wealth of knowledge and expertise, guiding you through each step from preparation to negotiations. They can help optimize your financials, strategize your marketing to attract suitable buyers and facilitate smooth negotiations. Importantly, our consultancy can also help you sidestep many of the major issues in selling a business quickly — such as getting caught up in due diligence or getting to the latest stages of the transaction with an unqualified buyer.
| Why do you need a business consultant or business intermediary consultant? As a business owner, your skill set is in understanding and running your business – not necessarily in selling it. Our experts specialize in getting the most value for your business, so you can concentrate on your next steps. |
Our consultancy leverages a comprehensive buyer’s network to reach a wider pool of potential buyers. With our perspective and industry insights, we can help you recognize the true value of your business, set a realistic and profitable asking price and pursue the buyers most likely to yield results for you. Ultimately, working with a business consultancy can streamline the process, potentially resulting in a quicker sale at a better price — and with less stress on your part.
Even in quick sales, due diligence remains an indispensable part of the process for both parties. On the buyer’s side, it’s an opportunity to validate the information presented, assess the viability of the business, and uncover any potential risks or liabilities. It’s a crucial step in ensuring that the buyer is making an informed and sound investment decision.
However, due diligence need not be a lengthy, drawn-out process that slows the sale. As a seller, your preparedness can significantly expedite the process. Having an organized, comprehensive set of financial records, contracts, customer lists, and other critical documents ready for review demonstrates transparency and can significantly reduce the time taken in this phase.
Part 4: Sealing the Deal
Concluding the sale of a business can vary greatly in terms of timing. The duration is largely contingent on a multitude of factors including the preparation of the seller, the responsiveness of the buyer, the rigor of due diligence, and the negotiation process.
On average, it can take anywhere from six months to a year to sell a small business. However, with meticulous preparation, a motivated buyer, and efficient due diligence — facilitated by an experienced business consultancy — the process can be expedited significantly. It’s reasonable to expect that a well-prepared business could potentially complete a sale in as little as 3 to 4 months.
But remember, while speed is important, ensuring the right fit with the prospective buyer and securing a fair price should be the guiding priorities. The most successful sales result from a balance of speed, thoroughness, and mutual satisfaction between the buyer and seller.
Conclusion
Selling your business fast doesn’t have to mean cutting corners or settling for less than your business is worth. With careful preparation, strategic marketing, and the support of a proficient business consultancy, you can speed up the process whilst ensuring the best possible outcome. It’s a journey that requires patience, diligence, and strategic decision-making, but with the right approach and support, it can lead to a rewarding conclusion.
Above all, you need to know why you’re selling your business quickly first — can your goals only be met through a quick sale? Are there external pressures? Understanding your own intent and motivations is the best (and easiest) path forward — and the best way to ensure that you get what you want.
Are you ready to start on your business selling journey? It’s time to find your business buyer. Connect with National Industry Network today for a confidential, no-obligation consultation.