How Long Does It Take To Sell My Business?
One of the most common questions from Florida business owners looking to sell their business concerns the time it takes to sell a business. There’s no easy answer, but we know the averages and the factors that determine the sale duration from the time of listing.
Here are just a few of the factors that impact the transaction time for selling a business:
The Asking Price
The asking price is one of the most significant factors that impact the time it takes to close a business sale. Typically, the more you ask, the longer it takes. Moreover, is your asking price competitive and reasonable?
The Sale Price
What a business is initially listed for and what it sells for is based on negotiations, competitiveness, market conditions, and more. Typically, the sale price will be lower than the original listing price, but not always.
EBITDA
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a primary measure of your business’s ability to generate cash and overall financial condition. The better your EBITDA, typically the faster you close the sale. EBITDA is a popular measurement of all business’s value.
SDE
SDE is very similar to EBITDA but is usually applied to the valuation of small businesses and includes the owner’s compensation as an adjustment. This factor in most negotiations can impact the time needed to close a business transaction.
Location
The business’ city or region. Location, location. The relative “health” or condition of your business location directly impacts the value of your business and the asking and sale price. The hotter the market, typically garners a higher price and an expedited sales timeline.
Financing
Many business acquisitions, including business sales, require funding, including business loans. Ready financing helps expedite the business sales transaction and closing.
Business Sector
Sector or industry. Your business industry or sector can directly impact the sales transaction timeline. The hotter, more profitable, or growing sectors often command a higher price and a faster closing. Less desirable sectors, or sectors with less growth potential, generally command a lower selling price and may take longer to sell.
In Closing:
Those are just a few factors that impact the sales timeline, including the valuation, listing, marketing, negotiations, and closing of your business sale transaction.
Eric Wayne of Eric Sell My Business has helped business owners like you sell all types of businesses in various Florida markets and every situation. Whether you’re selling your business to fund your retirement due to a divorce or financial hardship, or you’re just looking for something new, we can help. Whatever your reason for selling, our proven process can help expedite the sale and deliver the best terms and sales price.
Speak to Eric Wayne, ranked a top 5% Florida business broker at (954) 562-2019, and receive a FREE business valuation.
