Why does it take so long to sell a business?

Anyone selling a business wants to know how long it will take to sell.

It’s a great question, which can be difficult to provide an exact answer to, given there are so many variables. Whatever the reason for selling retirement, a new venture, or just ready for a change, timing your sale is key to a smooth transition and maximising value.

We’ve helped hundreds of business owners across New Zealand to sell their businesses successfully.  Here’s what you need to know about the timeline, what influences it, and how to prepare.

What Is the Average Time to Sell a Business?

The average business sale in New Zealand takes ~3 to 6 months from listing to settlement. This is just an average; some businesses sell in under 3 months, while others can take over a year, depending on a range of factors.

What are the Stages of Selling a Business?

• Preparation (1–2 months) 
  • Financials reviewed and normalised
  • Business appraisal
  • Information Memorandum (IM) created
• Marketing to identify Buyers (1–3 months)
  • Business listed
  • Enquiries generated & start qualifying process
  • Initial buyer meetings
• Negotiation & Offer (1–2 months)
  • Offer made and accepted
  • Basic terms negotiated
• Due Diligence & Contracts (1–2 months)
  • Buyer investigates financials, legal and operational documents
  • Final contract drafted - Sale & Purchase Agreement
  • Landlord consent, lease assignments, and employee agreements finalised
• Settlement (2–4 weeks)
  • Final payments made
  • Transition of business to new owner

Factors that can slow down a Business Sale:

• Poor financial documentation
• Overpricing the business
• Lease complications
• Limited buyer pool (industry-specific businesses)
• Legal issues or unresolved liabilities
• Lack of a professional advisor or broker

Having a good business broker who can focus on mitigating these issues early will keep your sale on track.

Factors that can speed up the process:

• Engage an experienced broker to guide you
• Have up-to-date financial information-last 3 years of financials prepared by your accountant
• Prepare a detailed Information Memorandum to answer common buyer questions upfront (your broker will create this for you from the information you provide)
• Ensure clean, transparent financials—ideally three years of accountant-prepared financials
• Have legal documents ready early—including lease agreements, supplier contracts, and employee terms
• Be realistic with your price expectations-take the emotion out of the sale
• Preparation is critical

When Is the Best Time to Sell a Business?

The best time to sell is when your business is performing well, growing, and you’re not in a rush. Seasonal businesses should aim to list well before peak periods to give buyers time to evaluate. Buyers love businesses that are stable and offer upside potential. Planning ahead is critical, and we recommend allowing at least 12 months of planning time before your ideal exit date.

NZ Business Brokers are exit specialists, helping you maximise value and minimise stress. Whether you’re ready to list or just exploring options, we’re here to guide you every step of the way.