How Long Does a Typical M&A Process Take?
If you’ve ever wondered how long it takes to sell a business, the honest answer is: longer than you think — and exactly as long as it needs to.
For most founders, the M&A process lasts six to twelve months from initial preparation to closing. But that number only tells part of the story. Each deal is unique, and the total timeline depends on your company’s readiness, complexity, and the type of buyer you engage.
At Legacy Advisors, we’ve guided founders through deals that closed in under six months — and others that took more than a year due to diligence, financing, or regulatory hurdles. What matters most isn’t speed, but momentum. The best deals move forward at a steady, predictable pace — driven by preparation, communication, and structure.
In The Entrepreneur’s Exit Playbook, I wrote:
“You can’t rush an exit, but you can control your readiness. The founder who prepares early controls the clock.”
Let’s break down how long each phase typically takes — and what determines whether your timeline stays on track or goes off course.
The Big Picture: Average M&A Timeline
A well-managed M&A process unfolds in five primary phases:
- Preparation & Readiness (3–6 months)
- Buyer Outreach & Negotiation (2–3 months)
- Letter of Intent (LOI) Negotiation (2–4 weeks)
- Due Diligence (2–4 months)
- Closing & Transition (1–2 months)
Total: 6–12 months, depending on deal size, structure, and responsiveness of both parties.
Now let’s explore what happens in each stage and what affects its duration.
Phase 1: Preparation & Readiness (3–6 months)
This is the single most important — and often the longest — part of the process. It includes cleaning financials, documenting systems, preparing your data room, and aligning your leadership team.
Key activities:
- Conducting a Quality of Earnings (QoE) review
- Resolving legal or HR risks
- Organizing contracts, tax filings, and IP records
- Creating a defensible forecast and KPI dashboard
- Clarifying your exit goals and preferred deal structure
What speeds it up:
- Engaging advisors early
- Having clean financials and contracts
- Being emotionally ready to sell
What slows it down:
- Missing documentation
- Personal expenses in business books
- Unresolved partner or legal disputes
Preparation isn’t glamorous — but it’s where you win the deal. A founder who invests in readiness cuts months off the overall timeline.
Phase 2: Buyer Outreach & Negotiation (2–3 months)
Once your materials are ready, your M&A advisor confidentially markets your business to a curated list of qualified buyers.
Key activities:
- Distributing teasers and NDAs
- Providing CIMs (Confidential Information Memorandums)
- Conducting buyer Q&A and management meetings
- Reviewing Indications of Interest (IOIs)
What speeds it up:
- Targeting a defined buyer universe
- Fast response times and organized data
- Engaged, proactive communication
What slows it down:
- Limited buyer pool or poor positioning
- Delays in responding to buyer questions
- Overly rigid pricing expectations
On the Legacy Advisors Podcast (https://legacyadvisors.io/podcast/), Ed and I often talk about how speed in outreach doesn’t mean rushing — it means eliminating friction. The smoother the communication, the faster the momentum builds.
Phase 3: Letter of Intent (LOI) Negotiation (2–4 weeks)
Once buyers submit IOIs, you’ll choose one to move forward with and negotiate the Letter of Intent (LOI) — the blueprint for the deal.
Key activities:
- Reviewing valuation and structure proposals
- Negotiating terms and exclusivity
- Signing the LOI to begin due diligence
What speeds it up:
- Having a strong advisory team (M&A advisor + attorney + CPA)
- Understanding deal structure, not just price
What slows it down:
- Lack of clarity on post-sale role
- Misalignment on earn-outs or equity rollover
- Over-negotiation without clear priorities
Once the LOI is signed, the buyer begins due diligence — and your clock officially starts ticking.
Phase 4: Due Diligence (2–4 months)
This is the most demanding phase. The buyer examines every corner of your business — financials, legal, operations, HR, IP, and more.
Key activities:
- Managing the virtual data room
- Responding to document requests
- Attending diligence meetings
- Resolving buyer questions or discrepancies
What speeds it up:
- A complete, organized data room
- Transparent and proactive communication
- A responsive team and advisor coordination
What slows it down:
- Inconsistent data or accounting
- Missing contracts or compliance documents
- Founders becoming unresponsive or distracted
This phase requires stamina. It’s where most founders feel the weight of the process. Staying calm, organized, and communicative keeps the timeline intact.
Phase 5: Closing & Transition (1–2 months)
The final stretch includes negotiating the purchase agreement, completing final diligence, and preparing for post-closing integration.
Key activities:
- Reviewing legal documents
- Finalizing working capital adjustments
- Preparing transition plans for leadership and employees
- Coordinating wire transfers and closing deliverables
What speeds it up:
- Clear post-closing roles and expectations
- An experienced M&A attorney
- Cooperative buyer communication
What slows it down:
- Last-minute surprises
- Financing delays
- Misalignment on transition expectations
Even after signing, you’ll typically remain engaged for several weeks or months during integration.
What Can Extend the Timeline Beyond 12 Months?
Some deals require more time due to complexity or external factors. Common reasons include:
- Regulatory approval (especially in healthcare, finance, or energy)
- Multiple shareholders or investor approvals
- Complex earn-out or equity structures
- International components (currency, tax, or compliance differences)
- Buyer-side delays (financing or internal approvals)
Patience and preparation go hand in hand. M&A isn’t about speed — it’s about sequencing.
Lessons from Experience
When I sold Pepperjam, the process took about nine months from start to finish. We had a strong team and clean financials, but diligence still required focus and endurance. That experience taught me that successful exits are about momentum management.
Deals slow down when founders lose energy, overreact to small issues, or let communication lag. The ones who stay steady, responsive, and well-prepared finish strong.
At Legacy Advisors, we help founders build that momentum — maintaining pace without pressure, and calm without complacency.
The Valuation Advantage
A well-paced deal signals professionalism and confidence. Buyers interpret consistency as a sign of operational health.
Conversely, delays — even small ones — create uncertainty. And uncertainty costs money. Founders who maintain clean documentation, quick responses, and composure throughout the process protect valuation and reduce risk of retrade (when buyers attempt to lower the price mid-deal).
Time, after all, is leverage.
Final Thoughts
The M&A process is a journey, not a transaction. It’s a test of readiness, discipline, and endurance.
Most founders underestimate how long it takes — but those who start early, stay organized, and work with experienced advisors never regret the time invested.
Exits don’t happen when you feel ready — they happen when your business is ready. The sooner you prepare, the sooner you can move from opportunity to outcome.
Find the Right Partner to Help Sell Your Business
At Legacy Advisors, we help founders manage every phase of the M&A process — from readiness and outreach to diligence and integration.
Visit legacyadvisors.io/ to connect with our team, listen to the Legacy Advisors Podcast (https://legacyadvisors.io/podcast/), and explore insights from The Entrepreneur’s Exit Playbook. Together, we’ll help you navigate your exit timeline with clarity, confidence, and composure.
Frequently Asked Questions About M&A Timelines
How long does it typically take to sell a business from start to finish?
Most M&A processes take between six and twelve months from initial preparation to closing. Smaller, simpler transactions may move faster, while complex or regulated industries can stretch well beyond a year. The biggest factor influencing timing is readiness. Businesses with clean financials, organized documentation, and aligned leadership teams move faster because they reduce uncertainty for buyers. As I wrote in The Entrepreneur’s Exit Playbook, “The founder who prepares early controls the timeline — and the outcome.”
Which phase of the M&A process usually takes the longest?
Preparation is often the longest and most critical phase, lasting three to six months. This includes cleaning up financials, conducting a Quality of Earnings (QoE) review, resolving legal issues, and preparing the virtual data room. The better you prepare, the shorter every other stage becomes. Founders who rush to market before they’re ready typically face delays later during diligence or closing — when time pressure can reduce leverage.
Can the M&A process move faster than six months?
Yes — but only under specific conditions. Accelerated deals usually occur when the seller is exceptionally well-prepared, the buyer is highly motivated, and both sides have experienced advisors. However, moving too fast can backfire if critical details are overlooked or relationships aren’t built. A balanced, steady process — not a rushed one — produces the strongest outcomes. At Legacy Advisors, we focus on momentum, not speed: fast enough to maintain excitement, but disciplined enough to protect value.
What factors can delay or extend an M&A timeline?
Common causes of delay include:
- Missing or incomplete documentation
- Poor financial organization or accounting discrepancies
- Legal or regulatory complications
- Slow buyer responsiveness
- Founder fatigue or emotional hesitation
- Complex earn-out or rollover equity structures
- Involvement of multiple investors or stakeholders
Each delay chips away at buyer confidence and momentum. The best defense is preparation — both operational and emotional — before ever going to market.
How can Legacy Advisors help me stay on track throughout the M&A process?
At Legacy Advisors, we guide founders through a structured, efficient timeline — from preparation to closing — ensuring nothing is overlooked. We build your readiness plan, manage buyer communication, and coordinate with your CPA, attorney, and deal team to keep the process moving smoothly. Drawing from The Entrepreneur’s Exit Playbook and real-world deal insights shared on the Legacy Advisors Podcast (https://legacyadvisors.io/podcast/), we help founders protect momentum, avoid costly delays, and close deals with confidence.