Buying or selling a business is a significant undertaking. Understanding what's involved helps you prepare and make better decisions throughout the process.
What to expect
A business transfer is rarely quick. From initial discussions to completion usually takes three to six months, depending on the size and complexity of the deal. Larger transactions, or those with complications, can take longer.
The process involves multiple parties, significant documentation, and careful negotiation. Both sides need advisers - lawyers, accountants, and sometimes brokers or corporate advisers. Getting the right team in place early makes everything smoother.
The usual timeline
1. Preliminary discussions (1-3 months)
Initial contact, expressions of interest, confidentiality agreements, and preliminary information sharing. This is when both parties decide whether to proceed.
2. Heads of agreement (2-4 weeks)
Agreeing indicative terms, exclusivity arrangements, and the framework for due diligence. Not legally binding on the transaction itself, but sets expectations.
3. Due diligence (4-8 weeks)
Detailed investigation of the business. Financial, legal, commercial, and operational review. This is where buyers discover what they're really buying.
4. Documentation (2-4 weeks)
Negotiating and finalising the sale agreement and all ancillary documents. Often overlaps with due diligence completion.
5. Completion (1-4 weeks)
Satisfying conditions, arranging funds, completion meeting, and handover. The deal is done when funds transfer and control changes.
Key parties involved
Lawyers
Legal due diligence, documentation, negotiation, and completion management. Essential on both sides.
Accountants
Financial due diligence, tax structuring advice, and working capital calculations.
Business brokers
For smaller deals, may handle marketing, buyer qualification, and process management.
Corporate advisers
For larger deals, provide strategic advice, valuation, and transaction coordination.
Buyer vs seller perspectives
Buyers and sellers have fundamentally different goals in a transaction. Buyers want to understand exactly what they're acquiring and protect themselves from hidden problems. Sellers want to maximise value and limit their exposure after the sale.
Understanding the other side's perspective helps you anticipate their concerns and find solutions that work for both parties. Experienced advisers bridge this gap.
What we do at this stage
We help you understand what is coming, assemble the right advisory team, and establish realistic expectations for the process. Getting this foundation right makes everything else easier.