Most owners underestimate how long it takes to sell a business.
You might assume the process will look something like selling real estate: prepare the asset, find a buyer, and close the deal a few months later.
In reality, a business sale is a far more structured transaction that includes preparation, negotiations, and due diligence.
Unlike selling a static asset, like a house, you’re selling a company that still needs to operate and perform throughout the process.
In this week’s newsletter, we’ll break down how long a business sale typically takes and how sellers can prepare for a smoother process.
We’ll cover:
- 3 insights on what drives deal timelines
- 2 frameworks to understand where delays happen most
- 1 action step to help you prepare now
3 Insights About M&A Timelines
1. Think Process, Not Just Timeline
Most successful transactions follow a disciplined sequence, with each stage having a clear purpose. At Marsh Creek our process looks like this.
Preparation → Solicitation → IOI → LOI → Diligence → Closing
While it’s helpful to have a rough idea of how long it takes to reach certain milestones, the most successful transactions are marked by moving through stages in a process rather than following a fixed timetable.
2. The LOI is a milestone, but not the finish line
Once an LOI is executed, the buyer enters diligence. This is where they validate assumptions and dig into every part of the business. If issues surface, the buyer may revisit valuation, structure, or terms.
The LOI is the starting point for scrutiny. Sellers who treat it as a finish line are often caught off guard by what comes next.
3. Risk increases as the deal progresses
As a seller, you have the most leverage early in the deal, before an LOI is signed. This is why the “solicitation” phase is one of the longest in the process.
Early stages carry relatively low risk because nothing is committed. Your goal should be to get as many competitive offers as possible and to secure the most favorable terms before committing to exclusivity through an LOI.
As you move forward, especially into diligence, the stakes increase significantly. And you have less ability to control or change the terms of the deal.
2 Frameworks That Impact Timeline
The Slow and Steady Drip
A typical timeline might look like this:
- Preparation: 30–45 days
- Solicitation: ~90 days
- IOI to LOI: ~30–45 days
- Diligence: 90–120 days
Each phase builds on the one before it.
When sellers try to compress this timeline, especially early stages, it often creates downstream issues. A disciplined process may feel slower upfront, but it reduces delays later and improves the likelihood of closing.
The Front-Loaded Effort Model
The smoothest deals are usually the ones where the seller did the most work beforehand. Preparing financials, normalizing EBITDA, and identifying potential diligence issues early all reduce friction later in the process.
Without that preparation, sellers often end up trying to solve problems in real time while the buyer is already deep into diligence. A front-loaded process may feel more demanding, but it typically leads to a cleaner path to closing.
List of Our Completed Transactions
1 Action Item This Week
Identify what needs to be completed before going to market
Ask yourself: If we went to market today, where would we slow down?
The more you can answer that question now, the smoother your process will be later.