How long does the typical Mergers and Acquisition sales process for a privately owned firm require?

The typical Mergers and Acquisitions sales process for a privately owned firm usually takes around nine months. This timeframe allows for various essential steps to be executed properly, including preparation, valuation, marketing the company, engaging potential buyers, conducting due diligence, and finalizing the transaction.

Nine months is a reasonable estimate as it strikes a balance between thoroughness and efficiency. During this period, the selling firm must prepare its financial statements, create a comprehensive information package for potential buyers, and then navigate negotiations and the due diligence process, which can be quite extensive. Ensuring adequate time for these crucial activities helps in maximizing the value of the business and facilitates a smoother transition.

Longer durations can be common, especially in complicated transactions or when external factors introduce delays, but many acquisitions can be structured and completed in about nine months, making this timeframe a standard reference in the M&A industry.