Is one of your goals for 2023 to sell your funeral home or cemetery business? While we are still in the first month of the year, there are various things you need to start now in order to make the transaction a success by the end of the year. Our Senior M&A Analyst, Jared Tanke is back to provide informative insights and the steps you need to take to get the transaction process started.
Question: It is my business goal to sell our funeral home in 2023. What do I need to do now?
Jared Tanke: To sell your funeral home in 2023, you should start by assessing the current market conditions and determining the value of your business. This is a service that Foresight recommends to all of our clients who are looking to sell, so you can have an expectation as to what is a fair value in todays Mergers & Acquisitions world. While we expect deal activity to continue through 2023, the effect of rising interest rates has had an impact on the valuations that individuals looking to acquire can afford. The Wall Street Journal prime rate alone has increased from 3.50% in March 2022 to 7.50% currently.
If there is still some time before selling, and to mitigate the depressed valuations, you should focus on improving the financial performance of your business. This could include changes in pricing to increase revenue, looking for ways to increase market share, reducing expenses, and improving cash flow. Another area of importance is the use of technology. We have seen throughout the pandemic, the ability of funeral homes to adapt to the needs of the families they serve. These operational efficiencies make your funeral or cemetery business even more attractive when going through a transition. On top of this, you should consider the condition of your property and make any necessary repairs or planned upgrades to ensure that it is in good condition when it is put on the market.
All of this may seem like an overwhelming process, but it will help ensure that upon a sale, you can obtain maximum value and a sense of happiness with the outcome. We would love the opportunity to help guide you through this transition and make it as smooth as possible.
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