How Long For Escrow to Close?

I'm Andrew Rogerson, an M&A-certified broker and advisor with over 17 years of experience guiding lower middle market businesses like yours through the California M&A labyrinth, especially in industries like:

• Manufacturing,
• construction,
• trucking & transportation
• industrial services,
• business services,
• healthcare,
• and managed IT.

I've seen it all: deals closed in record time, thanks to strategic planning and proactive execution, and others dragged down by avoidable delays, leaving sellers frustrated and financially hamstrung.

So, let's rip the veil off the "how long does escrow take" mystery. The average California escrow for a lower middle market business with commercial property can take anywhere from 30 to 60 days, but this seemingly straightforward answer hides a tangled web of factors that can stretch that timeline into months, even years.

But fear not!

By deploying these three sneaky ways to win the California escrow M&A game, you can slash months off your timeline and secure a smooth, swift exit:

Secret Weapon #1: Proactive Preparation is Your Kryptonite to Delays

Think of escrow as a marathon, not a sprint. The more prepared you are at the starting line, the faster you'll cross the finish line. Here's how to pre-fuel your success:

• Gather your paperwork like a document-hoarding dragon: Organize every contract, permit, lease agreement, and tax return like your life depends on it. Remember, a well-organized seller is a happy escrow agent, and a happy escrow agent means a speedy process.
• Conduct a thorough property inspection: Don't wait for the buyer to uncover hidden issues. Be proactive and identify any potential problems upfront, giving you time to address them before they become roadblocks. Remember, transparency is your shield against unexpected delays.
• Choose the right escrow agent: Don't settle for the first name that pops up. Select an experienced agent with a proven track record of handling lower-middle-market deals in your industry. Think of them as your escrow sherpa, guiding you through the treacherous terrain of paperwork and deadlines.

Secret Weapon #2: Negotiation is Your Superpower

Don't be afraid to channel your inner negotiator! California escrow mergers and acquisitions is a collaborative process, and understanding the art of negotiation can shave weeks off your timeline. Here's how to flex your negotiation muscles:

• Know your worth: Don't undervalue your business. Research fair market value and be prepared to negotiate a favorable escrow timeline within your terms. Remember, confidence is your key to unlocking a swift and profitable exit.
• Be flexible, but firm: Unexpected circumstances can arise. Be prepared to adapt your timeline within reason, but don't let the buyer dictate an unreasonable pace. Remember, a balanced approach ensures a smooth journey for everyone involved.
• Communicate like a pro: Clear and consistent communication is key. Keep your buyer, escrow agent, and legal team informed of any changes or developments. Remember, open communication builds trust and helps navigate unforeseen challenges.

Secret Weapon #3: Embrace Technology as Your Time-Traveling Ally

The tech revolution is here, and it's transforming the M&A landscape. Embrace technology to streamline your escrow process and shave precious days off your timeline:

• Utilize online document portals: Ditch the paper avalanche! Opt for secure online platforms to share documents, track progress, and receive updates in real time. Remember, technology is your friend, not your foe, in this digital age.
• Leverage virtual communication tools: Take advantage of video conferencing and online collaboration platforms to stay connected with your team and address any issues quickly and efficiently. Remember, virtual meetings are your secret weapon for saving time and travel costs.
• Explore digital escrow services: Some forward-thinking escrow companies offer innovative digital solutions that can expedite the process and reduce paperwork. Research and consider these options to see if they fit your needs and timeline.

Final Take: Swift California Escrow When Selling Your Operating Business With Commercial Property

Remember, a swift California escrow is not just about speed, it's about control. By proactively preparing, mastering the art of negotiation, and embracing technology, you can transform your M&A journey from a drawn-out saga into a swift and successful exit.

Don't let California escrow be your retirement roadblock. Contact me today for a free inquiry and let's close your deal successfully. 

Disclaimer: While Rogerson Business Services doesn't offer escrow services directly, we partner with the trusted team at Glen Oaks Escrow, led by the highly experienced Cynthia Moller. We understand the intricacies of business with real estate transactions and are here to guide you through every step of the escrow process.

If you are a retiring business owner looking to exit your lower middle market business in California, here are six tips to get you started:

1. Don't wait until the last minute to start planning your exit. The process of selling a lower-middle market business can take a long time, so it's important to start early.

2. Have a clear idea of what you want to get out of the sale. Know your goals and what you're willing to negotiate.

3. Know what's your company's worth. This is an essential step to take when planning to sell your service business company in California.

4. Choose the right type of buyer. Not all buyers are created equal, so do your research and find the right one for your business.

5. Be prepared for a lot of due diligence. M&A buy-side due diligence is when buyers will want to know everything about your business, so be ready to provide documentation and answer questions.

6. Be flexible with the terms and conditions of the deal. It's important to be open to negotiation to get the best possible deal for your business.

Rogerson Business Services, also known as, California's lower middle market business broker is a sell-side M&A advisory firm that has closed hundreds of lower middle-market deals in California. We are dedicated to helping our clients maximize value and achieve their desired outcomes. 

We have a deep understanding of the Californian market and an extensive network of buyers, which allows us to get the best possible price for our clients. We also provide comprehensive support throughout the entire process, from initial valuation to post-closing integration. 

Our hands-on approach and commitment to our client's success set us apart from other firms in the industry. If you consider selling your lower-middle market business, we would be honored to help you navigate the process and realize your goals.

If you have decided to value and then sell your lower middle market company or are still not ready, get started here, or call toll-free 1-844-414-9600 and leave a voice message with your question and get it answered within 24 hours. 

The deal team is spearheaded by Andrew Rogerson, Certified M&A Advisor, he will personally review and understand your pain point/s and prioritize your inquiry with Rogerson Business Services, RBS Advisors.

Go to the next article: escrow agreement and unlock the escrow process in California.