How long does it take to close?

by an investor from Harvard University - Harvard Business School

1 year ago

Some sellers and brokers are going to approach your LOI negotiation demanding that you be able to close in###-###-#### days. Unfortunately, that’s the minority of deals in SMB world. Make sure you’re prepared for a relatively long diligence and closing period:

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intermediary from Boston College - Wallace E. Carroll School of Management

60-75 days if everyone involved is experience and the deal is not complex. Otherwise###-###-#### days is normal.

1 year ago | like reply | 0 likes

intermediary from Wake Forest University - Schools of Business

It would be interesting to see the comparison of unrepresented sellers to represented ones. For a represented seller, unless a very complex situation (regulatory, third-party consents, etc.) if it takes longer than 90 days from LOI to close, maybe add 30 for real estate, something went sideways or wasn't organized. I do note that the graph above is "discovered to close", so add a month to submit LOI. On the other hand, to your comment, closing in###-###-#### days from LOI is very tight, and would need all stars aligned, a very simple deal, and no real estate.

1 year ago | like reply | 3 likes

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