Foresight

The Challenge Selling a business is a major financial and emotional milestone, often complicated by family dynamics and long-term planning. While advisors are essential, success depends on their alignment, clear communication, and guidance throughout the process. When a family-owned funeral home faced delays and confusion from fragmented advice, Foresight was brought in to coordinate the team and ensure a successful sale. The Solution Milestone #1: Choosing a Successor The owners hoped their grandchildren would take over, but their inexperience and limited financing made this unfeasible. The bank’s initial advice was vague and overly optimistic. In reality, the deal required a significant discount and risky seller financing, exposing the owners if the grandchildren defaulted on payments. Once this was clear, the family opted for a third-party sale, allowing the grandchildren to grow in the business without heavy debt. Milestone #2: Choosing […]

In a significant move, the Federal Trade Commission (FTC) made waves in April by nullifying and prohibiting noncompete clauses in the majority of employment contracts. While this ruling raises questions for various sectors, its impact on funeral homes and cemeteries remains uncertain, primarily due to historical difficulties in enforcing overly broad noncompetes. Funeral directors’ agreements epitomize the type of contracts under scrutiny by the FTC. Understandably, no enterprise welcomes additional regulatory hurdles. Yet, within the funeral and cemetery profession, noncompete clauses provoke distinct relational and practical considerations. Reflecting on transactions dating back to the mid-1990s, the crux of the matter lies in the feasibility of restricting individuals from pursuing their livelihoods. It is important to note that limitations on professional mobility are problematic. However, perceptions may shift if ample compensation is provided for other reasons. The crux of the matter […]

Succession planning is an essential process that ensures the seamless transition of leadership and ownership within a business, from one generation to the next or even to new proprietors. In the traditional world of the funeral profession, where family ownership has long been the norm, passing down the business to the next generation was often seen as an inevitable path. However, the landscape is shifting.  Sustaining and growing multigenerational funeral homes has become increasingly challenging. In this blog post, we will delve into the intricacies of succession planning in the funeral profession, using insights from the 2023 NFDA Member Succession Planning Study as our guide. We will explore the evolving challenges faced by funeral professionals, delve into the critical elements of succession planning, and emphasize the necessity of early preparations and expert guidance. The Changing Landscape of Succession in Funeral […]