Video: How Long Does the Sale Process Take?
As the healthcare industry continues to evolve, many businesses are looking towards mergers and acquisitions (M&A) as a way to stay competitive and grow their operations. However, before engaging in a sell-side process, it’s important for business owners to understand the timeline and expectations of the process, including answering the question, “how long will it take to sell my company?”
Look for these other videos from M&A Healthcare Advisors on the M&A Selling process:
Phase One: Preparing the Business For Sale
According to Mark Thomas, Co-Founder and Director of Operations at M&A Healthcare Advisors, the sale process typically takes six to nine months from start to finish. This timeline is broken down into three distinct phases: preparing the business for sale, attracting buyers and offers, and completing due diligence with an identified buyer. the first phase typically takes about four weeks. During this time, an intermediary like M&A Healthcare Advisors will gather all necessary data and information about the business to create a confidential information memorandum that can be shared with prospective buyers.
Phase Two: Attracting Buyers and Offers
The second phase of the M&A process involves marketing the business to potential buyers and ultimately attracting offers. This phase can take anywhere from four to eight weeks depending on how quickly interested parties respond. By the end of this phase, there should be multiple offers on hand that can be used as leverage during negotiations.
Phase Three: Due Diligence
The final phase is completing due diligence with an identified buyer. This is when potential buyers conduct a thorough review of all aspects of the company such as financials, legal documentation or contracts, which usually takes around 90 days but can extend by approximately 45 days. It’s important for business owners considering a sell-side process not only understand these timelines but also remember that every deal is unique with its own nuances which could impact timelines positively or negatively.
Overall, it’s essential for business owners considering a sell-side process to work with experienced intermediaries like M&A Healthcare Advisors who can provide guidance and help navigate what can often be a complex and lengthy process. By understanding timelines and factors that could impact them, businesses can approach M&A transactions with confidence and make informed decisions that will ultimately benefit the long-term viability of their operations.