How long does it take to sell a business?

A typical third-party business sale takes 9–18 months from the decision to sell through closing. This includes 2–4 months of preparation (cleaning up financials, reducing owner dependency), 2–3 months to engage a broker and prepare marketing materials, and 4–9 months of active marketing, buyer meetings, due diligence, and closing. Businesses under $1M in value can sometimes close in 6–9 months; businesses over $5M often take 12–24 months.

When should I start planning to sell my business?

Start exit planning 2–4 years before you want to retire. This gives you time to increase value (reduce owner dependency, clean up financials, grow recurring revenue), maximize sale price with proper preparation, and negotiate from a position of strength rather than urgency. Owners who plan 3+ years ahead typically sell for 20–40% more than those forced to sell quickly.

What does a business broker cost?

Business brokers typically charge 8–12% of the sale price for businesses under $5M, with minimum fees of $15,000–$25,000. M&A advisors for larger deals ($5M+) often charge 3–6% on a Lehman fee scale. Most brokers work on success fees only — no upfront cost. For a $2M sale, expect to pay $160,000–$240,000 in broker fees. This is typically well worth it: brokered sales achieve higher prices and higher close rates than for-sale-by-owner transactions.

What is owner dependency and why does it matter for selling a business?

Owner dependency is the degree to which the business requires the owner's daily involvement to operate. High owner dependency is the #1 reason businesses fail to sell or sell at deep discounts. Buyers need confidence the business will continue generating revenue without you. To reduce dependency: document all processes (SOPs), build a management team, shift client relationships from yourself to staff, and establish systems for sales, operations, and finance. This process typically takes 12–18 months and is best started 2+ years before your planned exit.

How much is my business worth?

Most small businesses sell for 2–4x Seller's Discretionary Earnings (SDE) or EBITDA. Service businesses with recurring revenue and low owner dependency command 3–5x. Businesses with high owner dependency or declining revenue may sell for 1.5–2x. To calculate: take your annual profit (add back owner's salary and personal expenses), multiply by your industry multiple. A CPA business valuation ($2,000–$5,000) gives you a defensible number for marketing. RetireStack's Exit Timeline Planner estimates your value based on your inputs.

Exit Timeline Planner — Business Exit Roadmap to Retirement

Your Personalized
Business Exit Roadmap

Tell the AI when you want to retire and where your business stands today. Get a phased exit roadmap — every milestone from now to close, with risk flags and cost estimates.

📋 Phased Milestones 🚩 Risk Detection 💰 Cost Estimates 🔗 Retirement Bridge

Free. No account required. Most owners complete in 4 minutes.

How Long Does It Take to Exit a Business?

A well-prepared third-party business sale takes 9–18 months from decision to close. Owners who start 2–4 years before their target retirement date consistently achieve higher valuations and cleaner deals. The exit timeline has five distinct phases: foundation (documentation, financial cleanup), value enhancement (reduce owner dependency, formal valuation), broker engagement and marketing, due diligence and LOI, and close with transition.

Owner dependency is the single biggest factor that reduces business sale prices. Buyers pay premium multiples (3.5–5x EBITDA) for businesses that can run without the founder. Businesses where the owner IS the business — handling sales, key relationships, and daily operations — typically sell for 1.5–2.5x or fail to sell at all. Reducing dependency takes 12–18 months minimum and requires building a management team, documenting processes, and transitioning client relationships to employees.

The total transaction cost of selling a business is 12–18% of sale price, including broker fees (8–12%), transaction attorney fees ($10,000–$25,000), CPA and financial cleanup costs ($2,000–$8,000), and any required business improvements. Proceeds from the sale are subject to long-term capital gains tax (15–20% federal, plus any applicable state tax). Use RetireStack's Post-Sale Retirement Bridge to map net proceeds to monthly retirement income.

Your Personalized
Business Exit Roadmap

Exit Timeline Advisor

📅 Your Exit Roadmap

🚩 Risk Flags

Ready to Engage a Broker?

SBA 7(a) Loans Finance Up to 90% of the Purchase Price

💰 Transaction Cost Estimate

🌉 When You Close

Save Your Roadmap

How Long Does It Take to Exit a Business?

Your PersonalizedBusiness Exit Roadmap

Exit Timeline Advisor

📅 Your Exit Roadmap

🚩 Risk Flags

Ready to Engage a Broker?

SBA 7(a) Loans Finance Up to 90% of the Purchase Price

💰 Transaction Cost Estimate

🌉 When You Close

Save Your Roadmap

How Long Does It Take to Exit a Business?

Your Personalized
Business Exit Roadmap