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Employee funeral directors work long hours and are often underpaid. Those with an entrepreneurial spirit eventually begin looking for a funeral home to buy. But, these factors sometimes create an ownership drive so strong it can overshadow logic when it comes to researching an opportunity.

Anatomy of a Sale

April 2, 2019

If you are considering the sale of your funeral home, you need to know up front it can be detailed and time consuming. But, there are several things you can do to help navigate your way through the process.

Once you find a business you would like to purchase, how much can you offer? Since there are exceptions to every rule, this article will attempt to provide the business buyer with some general guidelines on the most common situations encountered when buying a funeral home.

In the funeral industry, sellers typically do not want their competitors to know they are considering a sale. So even though there may be a lot of funeral homes for sale at any given time, it may be very difficult to find out which ones are actually available.

Unlike buying a house or a car, buying a business is a process of determining the true value of the business while uncovering any issues that may enhance or detract from the future operation of the business. The process of analyzing the business prior to the purchase is referred to as “due diligence” and the time period for performing these actions is referred to as the “due diligence period.”

This is part two of a two part series on common selling myths. Selling myths covered in part one of this series included formal business valuations, exclusive listing agreements, and buyer paid broker fees.

Selling a funeral home can be difficult and time consuming. If you are planning to sell, reading about these common selling myths may save you time, money, frustration and give you a better understanding of the selling process. If you are planning to buy, this article will help you understand the process from the seller’s perspective.

Preparing for the Sale

January 5, 2019

Selling your funeral home can be the single most important event of a funeral director’s career. Regardless of what is prompting the sale, it should be handled correctly as it will have far-reaching financial and emotional consequences.

As Don Quixote once said, “A bird in the hand is worth two in the bush.” This quote applies to the funeral home industry. Today, large corporations rarely buy small and medium size funeral homes. Normally they are looking for 250-plus calls per year or more. After the feeding frenzy of the 1990s, corporations learned the importance of an owners personal touch and the importance of not overpaying for acquisitions.

Have you ever thought about selling your funeral home? Do you have any idea of how much your funeral home might be worth in today’s market? These are tough questions that many funeral home owners will be facing very soon. If you are considering a sale in the next few years, it is critical that you find out the answers to these questions now before you plan to sell.

Do you know what your funeral home is worth? Most business owners think they have a good idea. Some will guess at their value and others might apply a multiple to revenue they’ve heard is an accurate measurement of value. Guessing and applying multiples to revenue typically do not produce accurate estimates of value.