It is not surprising that the transaction environment is still as fast paced as it was this time last year. We were recently asked about the current environment and what to consider when deciding to sell your funeral business. Chris Cruger provides his insights on this important topic.
Question: I am considering selling my funeral home in 2022. What does the current environment look like and what should I be considering when selling my business?
Chris Cruger: First and foremost, if you want to do anything in 2022, you need to get the ball rolling immediately. The end of the year will be here before you know it and there is no time to waste. We discussed this very topic during the 2022 Funeral (un) Conference and it also introduces a number of other considerations.
The first is, are you ready to sell? If you are considering a sale in the next two to three years, I would suggest that you have that conversation right now. The market is active, but it is not sure to be at the same levels a few years down the road. It is worth understanding what valuations and availability of financing looks like in the current environment.
It is also important to note, that while we continue to see many high-profile acquisitions in our profession with strong valuations, these past few years have caused the market and its buyers to be much more disciplined. Please do not be deceived into thinking that options and valuations are endless. The resources of buyers and the availability of capital is becoming more difficult to come by. In many cases, it remains a sellers’ market but not always.
So, what does this exactly mean? Simply put, it means you have to have a good, solid plan. That is the case whether you want to sell, expand, or just run efficiently. There is still plenty of time in 2022, but you will have to act quickly.
If you have any questions about your succession plan or need some help navigating the transaction waters, please give us a call. We would love the opportunity to work with you in setting up the best path forward.