When selling your business it is normal to wonder how long you can expect the process to take from execution of the marketing agreement to the execution of the purchase agreement. And honestly, there isn’t one way to answer this question, because there are so many variables at play.
If your business is in tip top shape, with clean records, great cash flow, no daily oversight required, and is in an active industry than you can expect it to sell much faster than a business without all of these things in place. The Colorado business sale market is still quite active despite the larger M&A market experiencing a slowdown. Lending is still good, and there are quite a few buyers ready to partake, many even coming from out of state. Once the economic cycle resets, however, than the story could become quite different.
Some of the factors that will play a role in how quickly your business can sell are as follows:
-Business Size (Bigger is not necessarily better)
-Profitability & Cash Flow
-Market Competition (High or Low)
-Industry (Active or Dying)
-Community Reputation & History
-Standards & Processes (The more documented the better)
-Owner’s Role (Active or Inactive)
-Location (High Traffic, Business Park, Downtown, Mountain Town, Suburb)
On average, the length of time between listing and closing on a business for Transworld - Rocky Mountain is about 6 months, which is 8% less than the industry average as provided by BizBuySell. In the end, some businesses sell in a matter of weeks and some may never sell. The time it takes to sell your business is highly dependant on the factors listed above and many more. Fortunately, with Transworld you can always expect a transparent process, brokers with a high level of industry expertise, and active marketing protocols. We don’t simply list your business for sale, we seek out buyers specifically.
For more information on how Transworld - Rocky Mountain can support you with the sale of a business, please visit our website or schedule a free consultation with one of our brokers today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master’s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.