How much does a business broker charge?

Business broker commissions range from 5–12% of the final sale price depending on deal size. Smaller businesses (under $1M) typically pay 10–12%, while mid-market businesses ($1M–$5M) pay 6–10%. Some brokers also charge an upfront retainer of $2,500–$15,000 for CIM preparation, which is usually credited back at closing.

What is seller's discretionary earnings (SDE)?

Seller's Discretionary Earnings (SDE) is the standard valuation metric for small businesses. It equals net profit plus owner salary, owner benefits, non-recurring expenses, and depreciation/amortization. SDE represents the total economic benefit to a single owner-operator. Most small businesses sell at 2–4× SDE.

Do I need a business broker to sell my business?

While you can technically sell without a broker, data consistently shows brokered transactions close at 15–25% higher prices and at higher completion rates than unrepresented sales. The exception is if you already have an identified buyer at an agreed price. In any other scenario, professional representation pays for itself many times over.

What is an IBBA-certified business broker?

The International Business Brokers Association (IBBA) is the professional body for business brokers. IBBA-certified brokers hold designations like CBI (Certified Business Intermediary) or M&AMI (Merger & Acquisition Master Intermediary), which require transaction history, continuing education, and adherence to a code of ethics. These certifications signal professional commitment and deal experience.

What is the difference between a business broker and an M&A advisor?

Business brokers typically handle Main Street and lower-middle-market transactions — businesses selling for $100K to $10M. M&A advisors operate in the middle market ($10M to $500M+) with larger teams, investment banking capabilities, and institutional buyer relationships. For businesses under $5M, a CBI-certified business broker is usually the right choice.

How long does it take to sell a business on average?

The average business sale takes 6–12 months from the time you engage a broker to the closing date. Smaller businesses ($250K–$1M) often close in 4–8 months; larger deals ($2M+) typically take 9–18 months due to SBA financing requirements and more complex due diligence.

What is the slowest stage of selling a business?

Due diligence is typically the longest stage, running 30–90 days after an LOI is signed. SBA loan processing adds another 45–90 days on top of that. The period from signed LOI to closed deal averages 60–120 days.

What can delay a business sale?

The most common delays are: SBA loan processing (adds 45–90 days), landlord approval for lease assignment (2–6 weeks), liquor license transfers in Florida (adds 45–90 days), environmental assessment (Phase I/II) for industrial businesses, and seller-side financial documentation gaps discovered during diligence.

When should I start preparing to sell my business?

Ideally 12–24 months before you want to close. The highest-ROI preparation steps — building recurring revenue, installing a management team, cleaning up financials, and documenting systems — take 12–18 months to show up in your financials and meaningfully affect your valuation.

How Long Does It Take to Sell a Business? (Realistic Timeline)

Q: How long does it take to sell a business?

Most small to mid-market business sales take 6–12 months from broker engagement to close. The stages include CIM preparation (4–8 weeks), buyer outreach and qualification (4–12 weeks), due diligence (30–90 days), and closing (2–4 weeks). SBA-financed deals add 30–60 days to the timeline.

The honest answer: 6–12 months for most small to mid-market businesses, from the time you sign with a broker to the day you close. Some close faster. Many take longer. Here is what drives the timeline and what you can control.

The Realistic Stage-by-Stage Timeline

Broker engagement + CIM preparation

4–8 weeks

Valuation analysis, financial normalization, CIM writing, buyer list development. Rushing this stage produces a weaker CIM and lower offers.

Buyer outreach + qualification

4–12 weeks

Broker contacts buyer list, manages NDA execution, sends CIM to qualified prospects. Smaller buyer pools (niche industries, high deal sizes) take longer.

Management meetings + LOI negotiation

2–8 weeks

Interested buyers request calls or site visits. Multiple simultaneous conversations → competing LOIs → better terms. A single-buyer process is risky.

Due diligence

30–90 days

Buyer's team (CPA, attorney, industry consultant) reviews financials, contracts, employees, operations. This is where most deals slow down or die.

Financing contingency (if SBA)

30–60 days on top of diligence

SBA loans add a meaningful timeline extension. Buyer must get approved; bank must approve the business. This often runs concurrent with diligence.

Closing and documentation

2–4 weeks

Asset purchase agreement, transition services agreement, lease assignment, landlord consent, employee notices. All parties' attorneys working simultaneously.

What Makes a Sale Take Longer

Disorganized financials

If your P&L doesn't reconcile to your tax returns, buyers and their CPAs will stall while asking for explanations. Clean, reconciled financials — prepared before going to market — eliminate weeks of back-and-forth.

Single-buyer process

Relying on one serious buyer at a time creates leverage for the buyer and eliminates urgency. Good brokers maintain 3–5 active buyer conversations simultaneously to keep processes moving.

SBA financing dependency

SBA loans are slow. If your deal price requires SBA financing, build 60–90 extra days into your expectation. Cash buyers or conventional financing close much faster.

Landlord delays

Lease assignment requires landlord consent — and landlords are sometimes unresponsive or difficult. Engage your landlord early. A delayed landlord is the most common reason closings get pushed.

Unrealistic seller expectations

Sellers who expect to close in 60 days or are inflexible on price often extend their timeline by cycling through multiple buyers. A well-priced business sells faster than an overpriced one every time.

Niche or complex business

Specialized businesses (manufacturing with environmental issues, healthcare with licensing, regulated industries) take longer because the buyer pool is smaller and diligence is more complex.

What Makes a Sale Close Faster

✓Clean 3-year financials prepared before the CIM — no unexplained variances

✓Experienced broker with active buyer relationships (not cold outreach)

✓Appropriately priced business — priced to sell, not to anchor high

✓All-cash or conventional financing buyer vs. SBA

✓Landlord pre-engaged — lease assignment discussed before you go to market

✓Employment agreements documented — no key employee surprises in diligence

✓Asset vs. stock sale already decided — don't leave this for after LOI

Timeline by Deal Size

Under $500K

3–6 months

Small buyer pool, SBA common, simpler diligence

$500K–$2M

6–9 months

Largest buyer pool, most active segment

$2M–$10M

6–12 months

More complex, multiple professional advisors

$10M+

9–18 months

Investment bank process, institutional buyers, heavy diligence

The 18-Month Rule

If you want to close in 12 months, start preparing 6 months before you call a broker. The highest-ROI preparation work — cleaning up financials, addressing key-man risk, formalizing contracts, getting tax returns filed on time, separating real estate — all takes 6–18 months to do properly.

Sellers who call a broker on a Monday wanting to sell by Friday are the ones who leave the most money on the table. The sellers who exit best are the ones who planned 18–24 months out and used that runway to maximize what a buyer would pay.

How Long Does It Take to Sell a Business?

The Realistic Stage-by-Stage Timeline

What Makes a Sale Take Longer

What Makes a Sale Close Faster

Timeline by Deal Size

The 18-Month Rule

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