Ask the Analyst

The Real Picture, Part 1: What Your Balance Sheet Is Actually Telling You Most funeral home owners can tell you what they made last year. Revenue, expenses, what was left over. Ask them about their balance sheet and the answer is usually some version of: “My accountant handles that.” That’s not a knock. The income statement is intuitive. Money in, money out, here’s what’s left. It’s a film. The balance sheet feels like accounting furniture. Something the bank asks for. Something filed away after tax season. But the balance sheet isn’t furniture. It’s the theater. You can have a sold-out show every night, but if the foundation is cracking and the rafters are rotting, the profit is an illusion. Everything your income statement reflects sits on top of it. And if what’s underneath is weak, none of the performance above […]

Deal fatigue is a phenomenon that occurs during lengthy or complex business transactions, most commonly in mergers and acquisitions where one or both parties experience a gradual erosion of enthusiasm, focus, and motivation to see the deal through to closing. It typically sets in after prolonged periods of negotiation, due diligence, and back-and-forth communication that stretch well beyond the originally anticipated timeline. As weeks turn into months, the cumulative weight of information requests and unresolved sticking points can wear down even the most seasoned dealmakers, causing minor issues and setbacks to become an expensive and drawn-out thorn in the side. The causes of deal fatigue often come down to a lack of organization and a failure to maintain urgency throughout the process. Sellers who are slow to upload requested documents, delayed in responding to questions, or simply unprepared for the […]

When a funeral home owner starts thinking seriously about a sale, there’s a question that doesn’t get enough attention early in the process: who actually buys these businesses, and how are they different from one another? It’s not a small distinction. The type of buyer sitting across the table from you will shape the offer you receive, the terms attached to it, and what your business looks like on the other side of closing. Broadly speaking, buyers in funeral and cemetery consolidation fall into four categories. National Consolidators These are the names most sellers already know. Publicly traded companies with national footprints, institutional capital, and decades of acquisition experience. They know what they’re looking for: consistent call volume, clean financials, and markets that fit their existing regional presence. When a business checks those boxes, they compete aggressively on price and […]

Most funeral home owners assume that once they decide to sell, the hardest part is over. In reality, deciding to sell is just the beginning. What surprises many owners is not the valuation conversation. It is how quickly a transaction can lose momentum during due diligence. That slow loss of energy is what we call deal fatigue. It rarely shows up as one dramatic event. It shows up in small ways that add up. A buyer asks for “one more” report. A question turns into three follow-ups. Emails sit longer than usual because the owner is still running the business day to day. The timeline stretches, and what started as an exciting next chapter begins to feel like a second full-time job. Deal fatigue is one of the most underestimated risks in a sale. These issues are common, and the […]

Based on mainstream 2026 forecasts, here’s what funeral professionals need to watch. Interest Rates and Business Borrowing in 2026 Let’s start with the big, invisible hand everyone’s felt but no one invited: the Federal Reserve. The Fed controls short-term interest rates by setting the “federal funds rate,” basically what banks charge each other to borrow money overnight. It’s not thrilling—but it drives everything from mortgage rates to commercial loans to your credit card APR. In 2026, that rate is projected by major banks and federal agencies to hover around 3.5–3.75%, down from the 2023 highs, but still miles above the near-zero era of the 2010s. For funeral homes, that means: higher payments on expansion loans, pricier lines of credit, and less room for error if calls dip. On a $1 million, 10‑year note, even a couple of percentage points equals […]