How Long Does It Take?

Restoration business owners tend to be bottom line people. We appreciate that. And, as a result, we get asked the same question a lot: 

How long does it take (to sell my business)?

The best, most realistic answer for most restoration businesses we sell with annual revenues under $5 million: 6 to 9 months.

Now, we have closed deals in less…I think our record is 100 days from request for representation to deposit of money in the seller’s bank account. But, for the normal restoration business we see with annual revenues under $5 million, expect 6 to 9 months.

There are things that need to be taken care of before we can put your business in front of potential buyers.

What condition are your financials in?

You’ll need to produce three years of clear, clean financials prepared by an outside CPA. We can help you understand what those need to look like, and even recommend an experienced CPA, but depending on how comprehensive your record keeping is, this can take time.

Do you have to find proper accounting and legal representation? 

The wrong CPA or attorney, either from a lack of experience or focus on your project, can slow things down. A lot! If you aren’t sure about your resources, we can recommend accounting and legal representation with both extensive experience in the restoration space AND an understanding of  the need for speed.

Is there “deferred maintenance” that needs doing?

Before you put your house on the market there are things you fix, right? That leaky faucet in the hall bath, the back deck needs staining, etc. Same with your business. We can offer guidance regarding what the red flags are for buyers, and certainly, everything doesn’t have to be perfect, but these things can take time.

Who is going to buy your business?

Will your likely buyer be someone a lot like you? Or perhaps they’re a M&A company needing to add a restoration company in your market. If so, and these make up the majority of potential buyers out there, we have longtime relationships and 2,500+ potential buyers in our database. If the buyer profile is unique, and we’re seeing this more lately, this can take additional digging (and time).

How close is your business to being worth 50% or 100% more than it is today?

This, obviously, is a big one. But it’s a choice, not a time barrier. As your adjusted earnings increase, the multiple of those earnings a buyer is willing to pay increases as well. If we believe, you and I, you can bump your average adjusted income up past $500,000, for example, your multiple might jump from 3 to 5. This could add $1 million to the sale price of your business and be well worth the additional time you invest to get there.

So, although we can move as fast or faster than anyone to find the right buyer for your business, there are a lot of moving parts that go into how quickly or slowly it happens. Fortunately, you control many of them. Fortunately, you’ll have us in your corner moving things along. But our goal isn’t just to sell your business as quickly as possible. It’s to sell it as quickly as possible for as much as possible. And no owner has ever complained about the few extra months it took to put several hundred thousand more dollars in his pocket.

If you are considering exiting your business in the foreseeable future, now might be a good time for a no charge, no obligation evaluation. In fact, we recommend an evaluation every year as you get closer to an exit.