Valuation Mergers and Acquisitions

September 13, 2017
Funeral And Cemetery Consultants Blog Where Do I Go From Here?

Where do I go from here?

Where 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
Funeral And Cemetery Consultants Dan Isard Isard CI 8 001

Cemetery Impossible – How can you tell if your cemetery is priced right?

Cemetery 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 […]
August 31, 2017
Funeral And Cemetery Consultants Dan Isard Time To Sell May 2017 Jh Page 1

Time To Sell Your Funeral Home Business

The 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 […]
October 5, 2016
Funeral And Cemetery Consultants Blog Dan Isard

Figuring out what your cemetery is worth and how its sale can fund your retirement – Cemetery Impossible – October 2016

Figuring out what your cemetery could be worth on the open market is a good idea if you plan to retire in a few years. But your local commercial real estate appraiser might never have valued a cemetery in his life. Cemetery Impossible Figuring out what your cemetery is worth and how its sale can fund your retirement Dear Cemetery Impossible, I own a 60-year-old cemetery started by my parents. It was a farm before we established the cemetery. I have about 100 acres, of which 10 are fully sold out. Within the remaining 90 acres, six are plotted and the balance remain undeveloped. I do about 200 sales a year with 150 interments. The cemetery is all ground interment with no above-ground options. I am reaching retirement age and thinking about selling. I had it valued by a local […]
July 29, 2016
Funeral And Cemetery Consultants Dan Isard Finance 101 August 2016

Ready For a Buyout? – Finance 101 – August 2016

Dear Dan, I am 54 years old and finally ready to buy out my father. I really should say Dad is 78 years old and finally thinks I am ready to buy him out. Regardless, my lawyer is telling us that we should use a cross-purchase agreement and my accountant is telling us to use a corporate redemption agreement. I don’t see the difference. Both ways, I own the business and Dad retires (finally). I’m sure you know the difference and can sim- ply tell us which to use. Signed, Finally Ready to Buy in Findley Dear Finally Ready, Your question is a very common one, and most people don’t know which agreement to use. Let’s start by explaining each route. A cross-purchase agreement is an agreement between shareholders – if one party sells, the other party buys. A corporate […]
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