OnwardLesson 4.10
How long it really takes
Once a business is listed, most small business sales take about seven and a half to twelve months to close.
The short version
- Once a business is listed, most small business sales take about seven and a half to twelve months to close.
- From a signed letter of intent to closing usually takes two and a half to four months of that time.
- Sales have been taking longer this year.
- Preparation before listing often takes longer than the sale itself.
The timeline, stage by stage
Getting ready. Cleaning up the books, gathering documents for the data room, reducing what depends on you. This happens before any buyer hears about the sale. It can take months or years, depending on where you start.
On the market. Finding buyers, screening them, sharing the confidential information memorandum (CIM), meeting the serious ones and receiving offers.
Letter of intent to closing. The buyer's due diligence, the lender's review, the purchase agreement and the closing. In Pepperdine's 2026 survey, this stage typically took two and a half to four months.
After closing. You may stay on to help with the handover. Buyers using an SBA loan can keep you on as a consultant for up to 24 months under rules effective October 1, 2026.
What the data shows
In Pepperdine's 2026 survey of business brokers, the median times were:
| Price of the business | Listing to closing | Letter of intent to closing |
|---|---|---|
| Under $500,000 | 7.5 months | 2.5 months |
| $500,000 to $1 million | 12 months | 4 months |
| $1 million to $2 million | 9 months | 3 months |
| $2 million to $5 million | 12 months | 4 months |
| Over $5 million | 9.5 months | 3 months |
Sales are taking longer. In the same survey, 46 percent of brokers said the time to sell a business had increased over the past year, and only 7 percent said it had fallen.
What slows a sale down
- Books that do not tie to the tax returns.
- Documents gathered only after a buyer asks for them.
- A lease or contract that needs consent to transfer.
- A buyer whose financing was not lined up.
- Too much depending on the owner.
Most of these are in your control. The data room in Lesson 2.6 and the work in Step 5 address them.
Planning your own timeline
Count backward from when you want to be done. Add the time on the market, the months from letter of intent to closing and any time you may stay on. Then add the preparation. Most owners find they need to start earlier than they expected.
When you are ready to talk to someone
Nobody needs to know you read this. When you are ready, these are the questions to bring.
- For a broker or advisor: "How long have sales like mine taken to close in the last year?" Listen for: recent examples, with the time on market and the time from letter of intent to closing.
- For your accountant: "How long would it take to get my books ready for a buyer?" Listen for: an honest estimate, and what would take the longest.
- For an owner who has already sold: "What took longer than you expected?" Listen for: the surprises. They are often the same for everyone.
Figures from Pepperdine Private Capital Markets Report, 2026. Benchmarks describe what happened in other sales. They do not predict yours.
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