Founders usually ask this question expecting a number. Here is the number: six to nine months from engaging an advisor to money in the bank, for a company that is prepared. Unprepared companies routinely take a year or more, and some never close at all. The difference is almost never the market. It is the state of the business when the process starts.
The timeline, phase by phase
- Preparation (1 to 2 months). Financials cleaned up and recast, the confidential information memorandum built, the data room assembled, the buyer list curated. This phase feels slow and saves months later.
- Marketing and buyer meetings (2 to 3 months). Confidential outreach to qualified strategic and financial buyers, NDAs, management calls, and first-round indications of interest. A real process creates competitive tension here; a one-buyer conversation gives all the leverage away.
- LOI and exclusivity (2 to 4 weeks). Negotiating price, structure, and terms before signing a letter of intent. The details you lock in here decide what you actually keep, which is why the LOI matters more than most sellers think. See what you actually keep when you sell.
- Due diligence and closing (2 to 3 months). Financial, legal, technical, and customer diligence, then purchase agreement negotiation, and close. This is where unprepared deals die or get repriced.
What makes software deals faster
- Recurring revenue with clean metrics. Net revenue retention, churn, and cohort data answer buyer questions before they are asked. This is why subscription software tends to move faster than license-and-services businesses.
- Contracts that transfer. Customer agreements that are current, signed, and assignable without consent from every counterparty.
- Financials a buyer can trust. Accrual-based statements, documented add-backs, revenue recognition that matches the contracts.
- A business that runs without the founder. Buyers pay more, and move faster, for a company that does not lose its engine on day one after close.
- The right buyer list. Fifteen qualified, curated buyers beat two hundred cold names. Knowing who is actually acquiring in your category this year is most of the game.
What drags a sale out
Almost every slow deal traces back to something the seller could have fixed before launch: financials that need restating mid-process, a key contract that expired or cannot be assigned, IP created by an early contractor who never signed an assignment, a top customer that is 40% of revenue, or a diligence surprise the buyer finds before the seller discloses it. Each one costs weeks, and each one hands the buyer a reason to chip the price. The fix is boring and effective: do the buyer's diligence on yourself first. That is the core of exit planning 12 to 36 months out.
The timeline is a pricing decision
Time kills deals, and it also reprices them. Every extra month in due diligence is another month of business performance the buyer gets to inspect, another quarter that has to beat plan, and another chance for the market to move. Sellers who compress the timeline by being prepared do not just close sooner. They close at the number on the LOI instead of the number after the retrade.
How 733Park runs it
733Park has spent 25 years selling payments, fintech, AI, and vertical SaaS companies, with 200+ closed transactions. We work on transactions from $5M to $350M, and when you work with us you work directly with a senior partner, not a junior associate. If you want to know what your timeline would look like, that conversation is free and confidential. Start here, or begin with the free valuation calculator.
Frequently asked questions
How long does it take to sell a software company?
For a well-prepared software company, plan on six to nine months from engaging an advisor to a closed deal: roughly one to two months of preparation, two to three months of marketing and buyer meetings, and three to four months from LOI through due diligence to close. Companies that start unprepared routinely take twelve months or more. Preparation before launch is the single biggest variable. 733Park has run this process across 200+ closed deals over 25 years.
How long does due diligence take when selling a software company?
Typically 60 to 90 days from a signed LOI. Financial, legal, technical, and customer diligence run in parallel. The timeline stretches when revenue recognition is messy, contracts are missing or non-assignable, or the cap table has surprises. Clean data rooms close faster and hold their price.
What slows down the sale of a software or SaaS company?
The usual culprits: financials that need restating, customer contracts that are missing, expired, or need consent to assign, unclear IP ownership from early contractors, heavy customer concentration, and an owner the business cannot run without. Every one of these is fixable before launch, and fixing them early is worth more than any negotiating tactic later.
Can you sell a software company in under six months?
Yes, when the business is genuinely exit-ready and the process is run tightly to a curated buyer list. It happens most often when the company has clean recurring revenue, documented contracts, and a management team that runs without the founder, or when a well-known strategic buyer has already been circling. Speed should never come at the cost of competitive tension: one buyer and a fast timeline usually means a lower price.
How long does it take to sell a SaaS company with recurring revenue?
The same six to nine month arc, and often at the faster end, because recurring revenue is easier for buyers to underwrite. Subscription metrics like net revenue retention, churn, and cohort behavior answer most diligence questions before they are asked. A SaaS business with clean metrics and low churn is the fastest profile to sell.
When should I start preparing to sell my software company?
Twelve to thirty-six months before you want to close. Most of the work that expands the multiple, cleaning up financials, diversifying revenue, reducing owner-dependence, and locking down contracts and IP, takes quarters, not weeks. Starting early converts directly into a shorter process and a higher net number.