Can someone explain the steps and length of time in buying a company/business?

[CDOtranches]

I've read a bit about it by flipping through books, Googling, etc., but I'm curious if anyone here has real world experience with this. I know d.d. can be as much as 30, 45 days, but how long could it all take, from the beginning, "Hi, my name is John and I'm interested in your company," to signing @ the closing?

-- As for why I'm asking, a family friend is in the negotiations stage (not at due diligence yet, but sounds like maybe soon) of buying a business that he offered me a job at if it works out, but I'm curious what that means in terms of length of time.

 

[Arif]

It depends on a lot of different factors such as
1.Is the seller organized and has all related documents handy?
2. Is the buyer obtaining a loan for the business? If so it will take a lot longer.
3. Has the buyer already done his homework on the industry prior to submitting an offer?
4. How long is the due diligence period that is agreed upon by the seller and buyer?
5. Are additional negotiations needed to secure the current office space with the landlord?

It can take anywhere from 2 weeks to 6 months because there are so many variables.

A good source for what it takes to buy a business can be found on this blog:
Archives | BizQuest's Business for Sale Blog
BTW the blogger states that over 90% of buyers never pull the trigger on buying a business. Some buyers analyze a deal to death and just keep asking questions then someone else swoops in and buys the business.
I wouldn't put too much weight into your friend buying this business until money changes hands.

 

[CDOtranches]

It depends on a lot of different factors such as
1.Is the seller organized and has all related documents handy?
2. Is the buyer obtaining a loan for the business? If so it will take a lot longer.
3. Has the buyer already done his homework on the industry prior to submitting an offer?
4. How long is the due diligence period that is agreed upon by the seller and buyer?
5. Are additional negotiations needed to secure the current office space with the landlord?

It can take anywhere from 2 weeks to 6 months because there are so many variables.

A good source for what it takes to buy a business can be found on this blog:
Archives | BizQuest's Business for Sale Blog
BTW the blogger states that over 90% of buyers never pull the trigger on buying a business. Some buyers analyze a deal to death and just keep asking questions then someone else swoops in and buys the business.
I wouldn't put too much weight into your friend buying this business until money changes hands.

Believe me, if there's one thing I've heard/read over and over, it's that these things rarely work out. But thank you for the info and the link, that definitely helps.