How long should it take to close your first deal?

One of the first questions people ask me is:

“How long will it take to close my first deal?”

Here’s the honest answer: most of my students close their first business in 6 to 9 months.

But I’ve seen it happen in as little as 5 months, and I’ve seen it take over a year.

Today, I’m breaking down what affects your timeline and what you can realistically expect, with the four phases of your first deal.

Phase 1 is for learning and searching (1-3 months)

This is when you’re building your knowledge, getting pre-qualified for an SBA loan, and actively looking at businesses.

I like to say you need to look at 20-30 businesses to make 2-3 solid offers.

This takes time!

To make this more manageable, aim to spend one hour per day looking at deals.

Phase 2 is making offers and negotiating (1-2 months)

Once you find a business worth pursuing, you’ll make an offer via Letter of Intent (LOI).

Most offers get rejected, and that’s totally normal and expected.

When one of your offers gets accepted, you’ll negotiate terms and finalize the LOI.

This can take weeks or get done in days, depending on the seller.

Phase 3 is all about due diligence (1-2 months)

After signing the LOI, you have 30-60 days to verify everything the seller told you is true.

This looks like:

• Reviewing financials

• Meeting employees

• Checking customer contracts

…And everything you need to know to confirm that the business is actually what it claims to be.

Phase 4 is closing time (1-3 months)

If you’re using an SBA loan, expect 60-90 days to finalize the loan package and close the deal.

Your lawyer drafts the purchase agreement, the bank processes paperwork, and you can prepare for Day 1 as owner!

What speeds up the timeline?

Industry experience helps.

My student Kris had oil industry experience and closed his deal in 5 months.

And Andrew, an accountant who bought an accounting firm, closed in 6 months.

It’s also important not to fall in love with one business during this process (you should be moving quickly through evaluations and making offers).

Having your finances ready also accelerates everything, so make sure to get pre-qualified for an SBA loan before you start your search.

What slows it down?

Indecision and overthinking are the biggest timeline killers, because analysis paralysis keeps you stuck evaluating the same business for months, instead of moving forward with an offer or walking away.

Sporadic effort also drags things out.

Looking at deals only when you “have time” instead of dedicating consistent hours each week will make your timeline longer.

Finally, targeting the wrong businesses will waste months of your life.

If every deal has red flags you should’ve caught in the first 30 minutes, you’ll get stuck in an endless loop of starting over.

Set realistic expectations

My first deal took over 18 months because I figured everything out alone.

With the right guidance, 6-9 months is realistic for most people, even if you’re working full-time and have a family.

If you’re ready to start looking for acquisition opportunities…

I share exciting business deals with subscribers when I come across ones worth considering.

To sign up for those emails, fill out this short form below:

👉 I want to buy (or passively invest into) a small business

And if you’re to sell your business, let me know below:

👉 I want to sell my small business

Onward,

— Ben Kelly