Well, selling a company is much more complex than selling a house. A successful business sale usually requires a great deal of pre-planning. It may take one to three years to drive sales, develop key staff, document operations and control expenses. The average house will sell in less than four months, while the average business sale takes nine months to a year, sometimes a couple of years.

Most business owners realize intuitively that there is more to the process of selling their business. Time is a key issue, in the sense that the many of the steps required before the business can be officially offered for sale are sometimes time consuming, a bit complex, or occasionally just difficult. As an example, some time back, I was excited to get a new restaurant listing with a great location, cash flow and volume, as well as an outstanding reputation. Everything looked wonderful for a successful sale.

But… for any business to be sold, showing its financial performance is a basic requirement. Meaning, the presence of Profit & Loss statements, Balance Sheets, Tax return records, Cash Flow statements and more. In the case of this particular restaurant, the financial records were a mess. The owner mingled cash between the restaurant operation and a couple of other businesses he had. Nothing made sense. If the business, regardless of its current success, is unable to show reliable and proper financials, it will not sell. Period.

And of course there is more. The business needs to be valued correctly, and confidentiality is typically a big issue (because you do not want employees or vendors to get spooked if they find out you are selling), and it is far more efficient and professional to have a third party (a business broker) representing you, helping you when it comes to this type of transaction.

Yes, the process of selling your business is far more complex than selling your house. However, getting the right support and information is similar to any other large project you might undertake. It becomes a project management task. And it is very doable.