The process of selling a business can take upwards of six to twelve months, and you should expect to hire a business broker for that timeframe to coordinate buyers and maximize competitive interest.
Selling or buying a business takes time, and every sell-side engagement contract is unique. We recently asked our community advisors and M&A professionals how long the typical sell-side engagement contract is, and what owners should expect. Read below to see what they had to say.
Most Common Contract Lengths Owners Should Expect
Our standard agreement term is six months. However, we are willing to compromise to a 3-month renewable term if this becomes a sticking point.
David Fairley, Business Intermediary @ Website Properties
12 months. The seller has to have reasonable expectations. It takes time and effort to sell a business.
Angelo Ferrara, Business Intermediary @ Rapt Enterprises, Inc.
12 months, but clients should be able to cancel sooner if the intermediary isn’t performing.
Tyler Evans, Business Intermediary @ SoCal Business Brokers
12 months or more.
Mike Adhikari, M&A Chair @ Illinois Corporate Investments, Inc.
A 12-month term helps set reasonable expectations that a transaction will probably take months.
Bob Fariss, Business Intermediary @ Murphy Business Sales
12 months is the standard.
Eric Gall, Business Intermediary @ Edison Business Advisors
12 months
April Femrite @ True Real Estate Mankato
18 MONTHS
António Mendes, Business Intermediary @ Opção PME Negócios
12 months with a 2 year tail.
Mark Mroczkowski, Business Intermediary @ Chapman Associates Mergers & Acquisitions
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