With just a few months left in the year, it is vital as funeral home owners and cemetery operators to have a strategic plan in place for the upcoming year. We understand that this can be complex and needs a high level of detail. Many often are challenged with understanding the true value of their business. We asked Senior Business Analyst, Jared Tanke to further elaborate on the importance of knowing your business value.
Question: What is something your clients struggle with?
Jared Tanke: Understanding value is one of the things that some of our clients struggle with as business owners. There are a lot of moving pieces that go into the value of a business operation. Often we hear from a client that a competing funeral home sold for some very high price, and they believe that their business is worth more because they do more services, or because their property is bigger than that competitor.
While these are very critical pieces to the puzzle, there is so much more that goes into it. How a firm is staffed, what is the mix of services, the average revenue per service, what kind of capital investments have been made in the last five years, these are all additional questions that need to be discussed in order to truly understand ones business value. These are just a few examples of additional questions asked when formulating a business valuation.
Whether you are thinking of selling now, in a few months, or just want to know the value of your business, please give us a call. We welcome the chance to collaborate with you on your business needs.