GUIDE

How long is the process of selling a business?

Selling a business includes strategic decisions, meticulous planning, and continuous negotiations.

When selling your life’s work it is time to come prepared to minimise the risks and pitfalls that are often encountered in a transaction process. After all, most business owners only sell their life’s work once (or twice when private equity companies are part of the cap table.

An M&A transaction normally spans around six months. From initial preparations to closing the deal, there are a number of steps that will be included in the M&A transaction.

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An M&A transaction normally spans around six months.

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Engaging an adviser to ensure that the preparation is done properly and that the process is optimised will reduce time spent in due diligence and negotiations that, in turn, will reduce risk of not completing the transaction and optimise the end result. Engage the adviser early to get the most out of the process of selling your business.

Preparation phase (1-3 months): We as advisors work actively with business owners to prepare the business for sale. We assist in preparing the business plan, conduct analyses, build the story, position the business, and produce marketing material to make sure potential buyers understand the value of the business.

Marketing and buyer discussions (1-2 months): Dialogues with potential buyers to attract interest in the business and distribute marketing materials.

Bid indication and negotiation: The fun part – Receiving indications of the value that potential buyers are willing to pay for your business and negotiation of value.

Due diligence (1-2 months): Buyers need to complete a thorough due diligence of the business with access to detailed materials. We as advisors support throughout to make sure that management can focus on running the business.

Negotiation of legal documentation (1-2 months): Normally takes place in parallel to the due diligence process where terms and conditions are negotiated.

Closing: The ownership transition is completed, and funds are transferred.

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Knowledge

We don't hide behind jargon and complexity. Instead, we aim to open up the black box of M&A, illuminating the path with clear insight, simplifying the process, and delivering valuable information.

Knowledge

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