Quick takeaways
- After an offer is signed, diligence usually takes a couple of weeks while the deposit is at risk.
- Lenders repeat document requests, so keep everything in one shared folder.
- Landlord approval and licenses can take weeks and often set the closing date.
- Plan the handoff of staff, customers and systems before closing day.
The stages
A typical sale moves from a signed offer to diligence, then to closing logistics, closing through an escrow or attorney and finally a transition period.
The whole process from engaging a broker to closing averages seven to nine months. A sale in sixty days is an outlier.
Diligence
The buyer checks tax returns, bank statements, the lease, your asset list and staff records. The review usually runs a couple of weeks, and the deposit is generally refundable until it ends.
Keep your numbers steady during this time. Letting performance slip makes buyers wary.
Financing and the lease
Bank loans add their own document requests and underwriting. Landlord approval can take about two months in some cases, so start the request early.
Lenders or landlords may require lien terms that attorneys must negotiate, and that can gate the closing date.
Licenses and filings
Licenses, tax clearances and county filings can sit on the critical path. Read our Kansas sale filing guides for the ones that apply, and start them as soon as you have an offer.
Why dates slip
Closing dates move often. A slow office, a late appraisal or a lender backlog can add weeks. The fourth quarter is the busiest time for bank closings.
Staff and transition
Tell employees close to closing, not before, to avoid flight risk. Plan a transition of at least two weeks, with many buyers asking for three or four, and put what you will provide in writing.
Post closing training time should be priced. A rough anchor is annual cash flow divided by about two thousand hours.
Closing day itself
Closing usually runs through an escrow agent or attorney. You sign the bill of sale, assignment documents and any note, and funds move after payoffs and fees come off the top.
Commission, attorney and CPA fees and debt payoffs all reduce what you take home, so ask for a net proceeds estimate early.
Next step
Put your price expectations on paper with find your price range. Also review add backs buyers accept.