Tag Archives: how long does a merger and acquisition take

How Long Does it Take to Sell a Company?

How long does it take to sell a company?  Milestones in a sale process are outlined in the following chart.

Milestone          Timeframe
Preparation of the marketing materials (by the advisor in concert with the seller) and due diligence materials (by the seller). The documentation including a teaser, CIM and buyer list, while iterative with the seller, can be completed within four weeks.

Preparation of the due diligence materials is highly company dependent and can take from several weeks to several months.

Engaging potential buyers and securing expressions of interest Potentially to many parties; up to 2 months
Management meetings and supplemental information provisioning; securing and negotiating the final LOI. With the top 3 to 5 parties; up to 2 months.
Due Diligence and drafting/negotiating the purchase and sale agreement. With the final party; 45 to 60 days.
Total 7 to 9 months

 

Having said that, the following is an actual example of a divestiture of a private company…