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.
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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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