Selling a business isn’t a quick transaction — and nor should it be. The process involves strategic preparation, positioning, and negotiation, all of which take time. While every business is different, a typical sale process in the UK can take anywhere from 6 to 12 months — and in some cases, even longer.
Understanding the timeline can help you prepare, avoid frustration, and make decisions that increase the likelihood of a successful outcome.
Factors That Influence the Timeline
Several variables affect how long it takes to sell a business, including:
- The size and complexity of the business: Larger businesses or those with multiple shareholders and international operations typically take longer to sell than small owner-managed firms.
- Industry dynamics: Sectors like healthcare or regulated financial services often involve more scrutiny from buyers.
- Buyer type: Selling to private equity, trade buyers, or management each has its own pace and process.
- Readiness for sale: Businesses with clean financials, documented processes, and strong management teams sell faster.
- Market conditions: Economic climate, buyer appetite, and access to capital can all impact deal velocity.
Typical Timeline Breakdown
Here’s what a standard business sale process might look like:
1. Preparation Phase (1–3 Months)
Before going to market, it’s critical to get your house in order. This involves:
- Business valuation
- Exit strategy alignment
- Preparing key financial and operational documents
- Identifying and addressing potential red flags
- Selecting an advisor or consultant to manage the process
This stage can be shortened if you’ve already been working with a succession or exit advisor — or lengthened if your business isn’t immediately sale-ready.
2. Marketing & Buyer Outreach (1–3 Months)
Once prepared, your advisor will develop a confidential information memorandum (IM), target buyer list, and outreach strategy. This includes:
- Discreetly marketing the business
- Engaging interested buyers under NDA
- Managing initial Q&A
Speed here depends on how desirable your business is, how well-qualified the buyers are, and how targeted the outreach is.
3. Negotiation & Offers (1–2 Months)
After initial conversations, buyers submit indicative offers (IOIs) followed by heads of terms (HoTs). This phase typically includes:
- Reviewing offers and deal structure
- Negotiating exclusivity
- Clarifying buyer funding and intentions
It’s important not to rush this stage. Structuring the right deal often matters more than the headline valuation.
4. Due Diligence & Legals (2–4 Months)
Due diligence is often the most time-consuming phase. It involves a deep dive into:
- Financials
- Legal structure
- Contracts
- Intellectual property
- Tax, HR, and regulatory compliance
Concurrent with this, legal teams work on the Sale and Purchase Agreement (SPA) and supporting documentation.
5. Completion & Transition (1–2 Months)
Once diligence is complete and contracts are finalised, the deal proceeds to completion. Depending on the structure, this might include:
- Share transfer
- Deferred consideration agreements
- Post-sale involvement for a handover period
Buyers often want the seller involved post-sale — either formally or informally — to ensure continuity.
Can You Speed It Up?
Some steps can be accelerated — but others can’t. Here’s what can help:
- Prepare early: Don’t wait until you want out to prepare. A business that’s always “exit-ready” can react faster. The best position to be in is having a business which can sell, but you don’t have to sell!
- Engage experienced advisors: Poor process management and lack of competitive tension is one of the biggest causes of delay.
- Be flexible on deal structure: Accepting earn-outs or phased payments can sometimes close deals faster.
- Keep momentum: Regular communication between parties reduces friction and uncertainty.
Final Thoughts
The sale of a business is a complex, multi-stage process. While six to twelve months is a reasonable estimate, the key is to focus on the quality of the outcome — not just the speed. A rushed deal can lead to regrets, while a well-managed process, even if slower, can result in significantly better value and terms.
You can use our free business exit timeline tool to create your timeline today!
If you’re considering selling your business, it’s never too early to begin planning. The earlier you start, the more options you’ll have — and the smoother the process will be when the time comes. Our business exit strategy team offer a free consultation which may be something to consider.
