Business divestiture is a crucial moment in an entrepreneur’s life. But how long does it take? And how can this process be accelerated? This guide will not only explain the factors that influence the duration of the sale, but will also show you how TwinL can help you optimize this process and speed up the sale of your business.
1) Key factors influencing the duration of the business sale
The time it takes to divest a business depends on many factors. The sector of your business, its size, its financial health and the regulations in force are all important elements. A company operating in a highly regulated sector may require more time to be divested due to the necessary controls and approvals associated with the various technical audits. If the duration of audits is generally incompressible, preparation can speed up the process.
2) Preparation: a key element to accelerate the transfer
Careful preparation can significantly speed up the business transfer process. It is essential to anticipate this sale by implementing clear documentation and up-to-date financial statements. The evaluation of your company, the constitution of a presentation file of your company and the phases of buyer research are all elements to best prepare the phases of negotiations and audit.
3) The expertise of an investment bank to maximize your chances of success
The support of an investment bank is a valuable asset for the preparation and the transfer process. This support allows you to focus your attention on the key elements and thus avoid scattering on a false opportunity resulting in waste of time. In addition, the use of an investment bank provides access to legal, financial and commercial expertise that can help you avoid the common and time-consuming pitfalls of a business sale. Indeed, even with a good preparation and a good valuation of your activity, the risk of failure and strategic traps remain important.
4) The importance of choosing the right partners
Choosing the right partners to support your sale is crucial. Selling a business is a complex process that can be stressful and difficult to manage. However, with proper preparation, the support of a team of experts and the selection of the right partners, you can optimize and speed up this process. Count on average 9 to 12 months between the signing of the Assignment Mandate and the closing of the transaction.
To obtain a free valuation of and an opinion on the possible outlets in your sector of activity, contact our experts via the form below.