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Many factors can bog down the sale of a business. In fact, more than purchase price or

structure, time is the most likely reason that a business sale may fail.

Time can breed frustration and fatigue. As a potential sale drags on, the owner is left in

an uncomfortable state of flux. The buyer may also become frustrated as fees mount.

The deal can reach the point when one party declares…“It just wasn’t meant to be.”

National figures indicate that the average business sells in nine to 12 months from start to

close. Once a letter of intent (LOI) has been signed, the final due diligence and closing

process usually takes 30 to 90 days.

So how do you keep the sales process moving forward?

Attentive Intermediaries

Your business intermediary should be able to give you the time, attention, energy and

resources necessary to focus on your deal.

Be sure to ask your business broker or intermediary about his or her organization’s work

on closing details. You want to be sure that you are working with someone who can

cover minute details, looking weeks and months ahead in the sale process.

Obtaining appraisals, ordering environmental investigations, transferring licenses, title

work and many other details need to be handled properly and in a timely fashion to be

able to close a transaction. For the best possible results, you want to work with someone

who knows the proper sequence of events so there aren’t any unnecessary delays.

There’s a lot to coordinate and missing just one detail can cause a delay in closing the

deal.

Transition Specialists

From your business broker or intermediary to your attorney and accountant, you want to

consider hiring specialists in business transitions.

Inexperienced advisors tend to be overly conservative to protect their liability. That can

drag out the negotiation process and may cause frustration for the parties involved. If

you are serious about selling your business, you really don't have the time or money to

pay to educate your advisors on the mergers & acquisitions process.

Comprehensive Overviews

Your advisor should spend the time packaging the business up front. A comprehensive

business review can be developed that answers 80 to 90 percent of the standard questions

a potential buyer will have.

This helps both the buyer and the lender make decisions more quickly. It will also save

you time because your intermediary won’t be requesting pieces of information as new

buyer questions arise.

Seller Preparation

Be prepared to move forward emotionally and financially. A seller will sometimes

thwart the sale because they haven’t seriously considered their future plans or their

financial expectations are out of line. A professional advisor should be honest in what he

or she believes the market can bear and should not let you go to market with an

unreasonable asking price.

Buyer Screening

Finally, your intermediary should screen all buyers to ensure they are serious about the

potential acquisition and have the financial means to move forward with a transaction.

You don’t want to waste time with buyers who simply can’t afford a purchase.

Selling a business can certainly be an emotional ride. It’s a time to work with deal

makers and specialists who will help to minimize the stress and help everyone move

forward toward the timely completion of the business sale.

The International Business Brokers Association® is the largest international, non-profit

association operating exclusively for the benefit of people and firms engaged in the

various aspects of a business brokerage and mergers and acquisitions. IBBA® has 1,950

members worldwide, with corporate headquarters in Chicago, Illinois.

©2008 International Business Brokers Association® (IBBA®) all rights reserved

Permission to reuse any or all of this material should be directed to the IBBA at 888-

686-4442 and is restricted to IBBA members.