September 13, 2017
Published by 
Dan Isard on September 13, 2017
Dan Isard on September 13, 2017Where Do I Go From Here? The components of a buy-sell agreement, establishing fair market value, valuing shareholders’ stock and determining whether the transaction is financeable. Dear Dan, Almost 30 years ago, I started to work for a funeral home. About 10 years into my employment, I was given the chance to buy a 25% stake in the business for $100,000. The seller, 10 years older than I am, continued to work with me as the 75% stockholder. I agreed to allow him to deduct $650 per month from my paycheck to finance this purchase over 20 years. His lawyer wrote up a buy-sell agreement I was told was routine and ordinary. Over the past 20 years, nothing has changed within the scope of the buy-sell agreement. Even with the decline in interest rates, I did not request a change. […]
September 11, 2017
Published by Dan Isard on September 11, 2017
Dan Isard on September 11, 2017Cemetery Impossible How can you tell if a cemetery is priced right? by Daniel M. Isard, MSFS Dear Cemetery Impossible, I own a small cemetery in a two-cemetery town. The other cemetery is larger, and I am very familiar with it. About a decade ago, it was bought by someone and then acquired by another company, then was acquired by another company, and so on. I asked the current manager of the property to let me know if his company ever wants to sell it. Well, I recently received an offering memo, with financial data, from the company. It turns out that they own hundreds of cemeteries and funeral homes. I thought the asking price looked reasonable, so I took it to my accountant and lawyer. They both agreed that it was a great deal. I then took it to […]
September 6, 2017
August 31, 2017
Published by Dan Isard on August 31, 2017
Dan Isard on August 31, 2017The funeral profession is approaching an era unlike we have experienced thus far. With the average age of a funeral home owner approaching sixty-six years old, over the next several years there will be an increase in the business transfer activity in our profession. When I describe a transfer of a business, I’m speaking about funeral homes that will be sold, follow a family succession plan, merge, or close their doors. Funeral home owners have the following questions to ponder: When should I sell my business? How much is my business worth? To whom should I sell my business? What are my options if I can’t sell my business? Let’s address the questions above to initiate fodder for thought about a ginormous (big deal) life event. I have been around the profession a while, and even though I cannot predict […]