New Jersey Business Brokers: Article About Time Required To Sell A Business
The amount of time it takes to sell your business depends on several variables. However, having some general time frames in mind helps you plan ahead financially and determine the best time to put your business on the market.
The structure of your sale, the season when you put it on the market and the actual value of the package you put together all have a critical bearing on the length of time it stays on the market. Your ability to quickly locate qualified buyers is also a decisive factor, and that is where your business broker's services are vital. Get professional assistance in organizing a timely transaction from your New Jersey business brokers.
On average, well-priced and professionally marketed businesses sell within six to nine months. If you need to sell faster due to health or financial difficulties, ask your broker about contacting private equity firms. Market conditions largely determine the number of prospective buyers at any given time as well as the speed with which a purchaser can obtain financing. Your broker has the expertise to interpret these changing conditions in relation to the sale of your company.
Your business broker can make suggestions for appropriately structuring your sale. Tax considerations, method of payment, an earn-out agreement and other factors help to determine your sale structure. Your broker works to craft a package that benefits both you and your purchaser so that you can reach an agreement more quickly.
The business brokers from Selby Associates of New Jersey would be happy to answer any question you have about corporate exit planning or business advisory services.
A merger of your business with a buyer's existing company may be an option. In this case, you would receive at least part of the sale proceeds as stock in the new entity. However, depending on the nature of your company, a merger could be complex and time-consuming. Also, you would not be immediately freed of business responsibilities.
The best times of year to sell your business largely coincide with those months when business is brisk. For example, many purchasers prefer to close deals before the holiday season. Spring is also a good time of year for selling since new beginnings and positivity are in the air. January and February are generally slow months for business deals, and summer vacation time is also slow. Work with your broker to time your sale offering so that it makes the most of seasonal fluctuations.
If your business is priced right, your chances of a faster sale are better. Your broker has the market insight and experience to help you avoid overpricing your company or taking a financial hit by undervaluing it.
By trusting the expertise of your business broker, you can be effective in streamlining your sale process. Keep the structure of the sale as simple as possible for a smoother transition.