Timeframe for selling an internet business - how long does it take?
Selling an internet business is a complex process that does not happen overnight. Most internet business brokers require a minimum of 30 days to get an internet business transaction finalized, but it always depends on the specific needs and goals of each client. The internet business broker team at iAcquisitions have helped sellers divest their website businesses in as little as 21 days from start to finish, but the average time frame is 45-60 days, especially since most buyers require a full 30 days for the due diligence phase. The overall time frame of the transaction will always be primarily dependent on the sale price and the accuracy of the financial statements. If the seller requires an extremely fast transaction timeframe, the seller will likely need to be flexible on the earnings multiple to attract the right type of buyer that has experience with internet business transactions and is prepared to close quickly. Most buyers won't agree to an expedited closing timeframe unless they receive a heavily discounted sale price in exchange for the faster closing time frame. Our website brokers always recommend structuring the deal around the average time frame speed as this strategy will always result in a higher overall sale price, but the needs and goals of every client is different and sometimes sellers need to sell immediately. The "need for speed" can be caused by a number of different reasons including, medical issues, family emergencies, unplanned relocation, divorce, etc.
Our website brokers take the time to understand the needs of every seller as each client will always be different. Even if the price is heavily discounted to attract the right type of buyer that can close quickly, there is never any guarantees that the transaction will close within 3 weeks or less, which means it's definitely a risk listing strategy, but it's also very possible if all market conditions are right. Normally, it usually takes 1-2 weeks to secure the first offer, another 30 days after the offer letter is signed for the due diligence phase and another 1-2 weeks for the buyer and seller to come to an agreement on the final version of the asset purchase agreement. It's the internet business broker's responsibility to make sure the transaction gets closed as quickly as possible, but often times, the overall process can only move so fast. Selling an internet business is similar to the process of selling a house. The process takes time, especially when both parties are dealing with attorneys, since the final stages of the transaction can be delayed if the attorneys don't offer fast turnaround times or if they unnecessarily complicate the deal. To ensure the best results, it's recommended that you work with an experience internet business broker that can help you avoid the common mistakes that often delay the overall timeframe of the transaction.