Selling a business is a once in a lifetime decision for most business owners, and the process can be demanding. A lengthy deal can also result in increased fatigue and stress, particularly since you need to continue running your business whilst trying to find the right buyer.
You may be wondering: how quickly can you sell a business?
The average time it takes to sell a small business in the UK is 6 to 12 months. But with the right preparation, appropriate buyer screening, operational excellence and proactive advertising, it’s possible to sell your business before this timeframe.
For example, we supported a business seller who sold his bed and breakfast in just three months!
But it’s also important to understand that selling a business quickly is not always possible. If you rush your preparation, overvalue your business, and become disengaged throughout the process, it’s unlikely you’ll sell your business quickly – if at all.
To help you avoid this situation, we’ll offer five steps you can actively take to sell your business quickly and efficiently.
Let’s get started.
5 steps to sell your business quickly
Here are some of the best ways to sell a business fast.
1. Careful preparation
We cannot emphasise this enough. Preparing your business for sale before you advertise it is imperative. Carefully and intentionally preparing and improving every aspect of your business is the foundation of any successful business sale.
To sell your business quickly, your preparation needs to be intricate, and this will take some time. Some of the most important tasks you’ll need to complete include:
- Understanding why you are selling your business.
- Improving your operational processes to make your business more attractive (like your procedures manual, organisation chart, automation software, and company contracts).
- Reviewing and cleaning up your accounting records (like budgeting, forecasting, cash flow management, and industry benchmarks).
- Improving any real estate and equipment.
- Updating and optimising your marketing plan so a buyer is aware of how to drive sales and profits.
If you’d like a more detailed list of elements to prepare and improve before you sell your business, you can read our selling a business guide.
2. Value your business pragmatically
Valuing a business is a common stage of the selling process, but to sell your business quickly, you need to ensure that your valuation aligns with what a buyer is willing to pay for your business. In the same breath, you need to be careful not to undervalue or overvalue your business.
Knowing what your business is worth and what criteria buyers (or their advisors) will value it against is crucial. This will help you improve certain areas of your business – like your intangible assets – and develop an explanation for areas you cannot improve or update.
Although the topic of valuing a business is beyond the scope of this article, you can read our valuation guide for comprehensive guidance, methods, benefits and examples.
3. Consider hiring a broker
If you’re thinking: “I need to sell my business fast”, then hiring a credible broker can help expedite the process.
Experienced business brokers will help you navigate the sale. Brokers can help with marketing plans, negotiations, and maximising the value of your business to safeguard the best deal.
Although it is possible to sell a business on your own, hiring a qualified broker can speed up the process – particularly the due diligence phase. But it’s important to remember that brokers can be expensive. Brokers take commission from your sale, which will decrease the amount of profit you make from the deal.
4. Attract the right buyer on the right platform
This step will explain two important things: attracting a buyer by effectively marketing your business and finding a qualified buyer as a result.
Effectively advertising your business for sale on the right platform that attracts the right buyers is imperative. When you advertise your business for sale, you need to create the best listing. Give financial figures, detailed descriptions and property information, and add clear images. When you’re crafting your listing, don’t be afraid to shout about your achievements (but always remain honest).
A well-crafted business for sale listing is more likely to attract buyers. Some buyers may not match your criteria, and some will. Understanding the motivations, financial reliability, and ambitions of these buyers will help you create a shortlist of qualified prospects. To ensure the deal progresses quickly, always remain in contact with your potential buyers and prepare yourself for the negotiation stage.
4. Strive for a successful transition
Encouraging and striving for a collaborative deal is one of the best ways to sell your business quickly. By remaining proactive, respectful and grounded, you can ensure a smooth transition that will produce positive results for both you and the buyer.
It’s also essential that you have a transition plan in place, which key stakeholders should be involved in. Will you help the buyer finance the sale? Will you stay on post-sale for a short time to support the buyer? Do you still want to be slightly involved in the business? These are some questions you’ll need to ask yourself.
FAQs on selling your business quickly
How long does it usually take to sell a company?
There is no guaranteed timeframe for selling a business, but the consensus is that it takes anywhere between 6 and 12 months to sell. However, this timeframe can decrease or increase depending on the size of a business, its industry, and its operational efficiency.
How do you value a business?
There are many ways to value a business. The simplest way is to add up the value of all your assets and deduct your debts and liabilities from this. This will give you a general understanding of how much your business is worth, but not an exact valuation.
How do you sell a business quickly?
You can sell a business quickly by taking your preparation and valuation seriously. You can also sell your business quickly by hiring a broker, creating an effective business for sale listing, and encouraging a collaborative and respectful selling process.
How do you sell a business without a broker?
You can sell your business online with BusinessesForSale.com, without using a broker.
If you’re thinking of selling your business privately, you’ll need to prepare for certain challenges. These challenges might manifest in the financial and legal elements of selling a business. But you can certainly overcome these on your own. You’ll just need to conduct appropriate research on selling a business before you go to market.
Can you sell a failing business?
Yes, you can. But the process will look different. Some steps you can take to sell a failing business include:
- Understand why your business is failing
- Emphasise the value in your assets and potential growth
- Get an accurate valuation and be transparent about the financial health of your business
- Maintain a healthy and professional relationship with the buyer
The bottom line: selling your business quickly
In general, selling a business can be a tiring and lengthy process. So, selling a business quickly requires even more attentive planning, resilience and patience. The most important thing to do if you want to sell your business quickly is thorough preparation before you start actively selling your business.
Being intentional about improving every aspect of your business in advance of selling it is the foundation of any successful deal. Hiring an experienced broker is the second most important thing to consider. While it is possible to sell your business quickly without a broker, you should still research ways a broker can support you.
If you’d like more insights and helpful resources of selling a business, you can explore our articles dedicated to sellers.
We hope this article has been helpful, and we wish you all the best on your selling journey.
@Be_theBoss