The Selling Process
If managed efficiently, the selling process could take as little as three to four months for very attractive businesses, but could take up to a year for smaller or less desirable companies. The average is between four to eight months.
The process can be separated into four basic phases:
 Download a graphical version here.
1. Discovery and Preparing Your Business
- During the first meeting, ABI will provide you with a wealth of information about the process.
- Your chance to ask any questions and our opportunity to learn about your business.
- Review essential documents (P&L, Tax Returns, Asset List, etc.).
- Recast your financials.
- Prepare an appraisal.
- Schedule a second meeting to present the report and discussing pricing.
- This phase could take one meeting or could span three to four meetings.
2. Marketing / Searching for a Buyer
- Create compelling and professional marketing material.
- Do not disclose sensitive information that could compromise your business. Confidentiality is crucial!
- Maintain multiple channels of marketing to find as many qualified buyers as possible.
- First, ABI searches its database of pre-screened buyers.
- Concurrently, we find new buyers through advertising on major business-for-sale websites and in local newspapers, executing direct-mail campaigns, telemarketing, and contacting suitable private equity groups (PEGS).
- You only meet with pre-screened buyers.
- This phase typically takes 1-6 months.
3. Negotiations & Deal Structuring
- Once an offer has been tendered, negotiations begin.
- ABI can negotiate on your behalf very effectively without bringing emotion into the process.
- ABI will evaluate the pros and cons of each offer with you.
- It is critical that both you and buyer feel that an equitable, Win-Win agreement is in place.
- This phase typically takes one week.
4. Due Diligence, Closing, & Training
- Well over 50% of market transactions fall apart in due diligence and never close.
- It is critical to carefully manage this process to keep it moving forward.
- We understand what it takes to maintain compliance.
- We always use a licensed escrow officer.
- ABI works with Bulk Sale Transfer laws and Escrow processes daily.
- Due Diligence should not last more than 14 days.
- Escrow is a minimum of 12 non-holiday business days.
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