Calhoun Companies President and Co-owner, Andy Kocemba, is a contributing writer for The Business Journals. Each month, he offers advice on buying and selling small to mid-size businesses.
While it may be impossible to predict how long it would take to sell your business, there are ways to speed up the process.
Of the many questions I get asked about the process of selling a business, I always joke that this is the one question I can’t answer: How long will it take to sell my business?
There are just too many factors that come into play.
While it may be impossible for me to say for certain how long it would take to sell your business, there are ways to speed up the process.
Reasonably Aggressive Pricing
Pricing is one of the most important factors in a quick sale, and working with an experienced broker is one of the most important factors in making sure your business is priced correctly.
While it might be tempting to think that the lower you price your business the faster it will sell, this isn’t always the case. There is a point at which a business can be priced too low relative to its cash flow, causing potential buyers to become suspicious of why you are selling. They might get the impression that you are trying to dump the business, and that you might know something they don’t.
Buyers may be looking for a good deal, but they also expect to pay a reasonable price for a good business. An experienced broker can help you identify the realistic price range within which your business would sell, and if speed of sale is one of your primary goals, consider going to market at the low end of this range.
Andy Kocemba is president and co-owner of Calhoun Cos., a top business brokerage firms in the Upper Midwest. Calhoun Cos. has been connecting buyers and sellers since 1908, working with small- to medium-sized businesses across allindustries. A graduate from Bethel University, Kocemba joined Calhoun Cos. in 2003 as a sales agent before buying the business in 2011. He is a member of the International Business Brokers Association, Minnesota Chamber of Commerce, and Better Business Bureau.
Read More from Andy:
- Do you know when it's time to sell your business
- 4 ways to maintain confidentiality when selling your business
- Strategies for buying a business without risking long-term regret
- 3 reasons why family succession may not be an exit strategy