How Long Does It Typically Take to Sell a Small Business?
Selling a small business isn’t like selling a car or a house—it’s often a complex process that involves finding the right buyer, negotiating terms, and ensuring a smooth transition. As a Phoenix-based small business broker with over 25 years of experience, I can tell you that one of the most common questions I hear is:
“How long will it take to sell my business?”
In general, the answer depends on many factors, but on average, the process can take anywhere from 6 to 12 months—sometimes longer. Let’s break down why.
Business Preparation Stage (1–2 Months)
Before your business ever goes to market, there’s important groundwork to complete. I would say on average it takes at least 30 days to get a sold listing package put together with a number of important elements.
This includes:
Gathering and organizing financial statements (at least 3 years, with 5 being ideal)
Preparing a detailed and confidential business profile for prospective buyers
Working with your broker to arrive at supportable asking price through a professional valuation by analyzing at least 3 years financial statements, researching “for sale” and “sold” comps of similar businesses, and applying industry pricing rules of thumb.
The better prepared you are, the faster you can move through the next stages.
Marketing and Buyer Search (3–6 Months)
Once your business is listed, the goal is to confidentially attract qualified buyers without disrupting operations or alarming employees. I will market your business confidentially with “blind ads” through online listing portals, buyer databases, and broker networks.
The amount of time this stage can depend on:
Industry demand
Current market conditions
The size and profitability of your business
How realistic your asking price is
Terms of the sale
Whether seller financing is being offered
In hot industries with strong cash flow, offers can come in within weeks or even days. In niche or slower-moving industries, it may take several months to find the right fit.
Negotiation and Due Diligence (1–2 Months)
Once an offer is accepted, the buyer will conduct due diligence—reviewing your financials, leases, contracts, and operational details such as staffing. This process is often the most time-consuming because it can involve attorneys, accountants, and sometimes lenders.
Clear, well-organized records can help avoid delays and keep negotiations moving smoothly.
Financing and Closing (1–2 Months)
If the buyer needs financing—often through an SBA loan—there’s additional paperwork, underwriting, and lender requirements to complete before closing. This step can move quickly if the buyer is pre-qualified, but it can also extend the timeline significantly if additional documentation is needed.
What Can Speed Up the Process?
While you can’t control every factor, you can improve your odds of a faster sale by:
Keeping your financial records up to date and accurate. Not having good financial records in place is far and away the biggest speed bump in getting a sale closed in my experience
Pricing your business realistically based on a professional valuation
Maintaining strong business performance during the sale process- don’t take your foot of the gas until the sale officially closes!
Being pragmatic and responsive during negotiations
My Final Thoughts
Every small business sale is unique, but most small business owners should expect a 6–12 month timeline from initial preparation to closing. Thankfully, the Arizona and Phoenix market is pretty vibrant, so businesses here do tend to sell faster in Arizona than other markets. Starting early, staying organized, and working with an experienced business broker can help you sell faster and for a better price. In addition as an intermediary, a business broker can help maintain the confidentiality of the sale.
If you’re thinking about selling your Phoenix-area based business, I offer a free, confidential consultation and business valuation to help you understand your options. Contact me now to get started.