Why Selling a Business or Property Takes Longer Than You Think: Unforeseen Delays and Strategic Hold-Ups

When you're selling a business or property, one of the most pressing questions is often, "How long will this take?" It's a fair concern. These types of transactions involve significant money, detailed negotiations, and multiple parties, all of which can make the timeline feel uncertain. While you'd hope for a straightforward answer from your solicitor, the reality is that predicting the length of the process can be tricky—and opinions differ on whether a solicitor should even try to give a definitive timeline. Let's delve into both sides of the debate to better understand why this is the case.

Solicitors with extensive experience in business or property transactions often have a general sense of how long the process might take. Having handled numerous cases, they are familiar with typical obstacles and can gauge the average timeline for similar deals. However, the speed of the transaction doesn’t rest solely on your solicitor’s shoulders. It also depends heavily on the solicitor representing the other side. Even if your solicitor handles everything promptly, delays can occur if the other party’s solicitor doesn’t prioritize the matter. Conversely, if the other side is equally focused on pushing things forward, the deal could be wrapped up much faster than anticipated.

Other factors can further complicate timelines. Delays in third-party responses, such as waiting on banks, government bodies, or regulatory authorities, can slow things down. The complexity of due diligence, which often uncovers issues requiring additional negotiation or clarification, can also contribute to unexpected delays. Additionally, the buyer’s ability to secure financing may create further holdups, turning what seemed like a straightforward process into something more drawn out.

A more concerning trend in business sales is the intentional delay tactics some buyers use. Increasingly, buyers will slow down communication with their solicitor, promising the seller that they are aiming to close by a certain date while quietly pushing the timeline further and further out. The seller, preparing for a final sale multiple times, may become less focused on running the business at full capacity, which can lead to a drop in financial performance.

This slow-down in business operations can be a strategic move on the buyer’s part. By extending the process, they can weaken the business’s financial standing over time, giving them leverage to negotiate a lower purchase price. The idea is that the seller, frustrated by the lengthy sale process and the apparent decline in their business’s performance, will be more inclined to accept a lower offer. In many cases, the buyer knows that the business’s struggles are temporary, but they’re hoping to capitalise on the seller’s impatience and fatigue.

So, how long does it take to sell a business or property.

In the end, while an experienced solicitor may give you an estimate, various factors—including the other party’s behaviour—make it impossible to guarantee a fixed timeline. Understanding these potential delays and tactics will better prepare you for the complexities of selling a business or property, allowing you to stay alert and navigate the process with more confidence.

Have another question? Do not hesitate to get in touch with our time and we will be happy to assist with any property or business related question.

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