Ask the Analyst

June 27, 2023

Three Emerging Trends Impacting Funeral & Cemetery M&A in 2023

Written by Sierra Heil, M&A Analyst Despite challenges in the current market environment, such as a slowing economy, inflation, and rising interest rates, many funeral home owners and cemetery operators are focused on succession planning. A 2021 survey by the National Funeral Directors Association found that 27% of owners planned to sell their business or retire within five years, meaning we are likely to continue to see plenty of transaction activity despite potential economic obstacles. Technology, shifting preferences, and changing demographics shape the nature of these transactions. While every business and community differs, careful strategic planning and awareness of changing landscapes can position an owner favorably when the time comes to sell. Increasing Private Equity Investment & Consolidation According to the NFDA, as of mid-2023, 89.2% of funeral home businesses are still independent and family owned. However, as the population […]
May 29, 2023

Strategic Budgeting to Prepare for Cash Flow Seasonality

Written by Jarod Bernat, Senior M&A Analyst It’s well known that in our industry, there are slow and high-volume periods that vary with the seasons due to the ebbs and flows of mortality rates as the year progresses. The timing of these periods can vary from region to region, but generally, they are fairly predictable based on historical precedent – this is what we call “seasonality”. During the summer, the sun nourishes our bodies with more Vitamin D than the rest of the year improving our immune systems, we’re more active outdoors, and overall moods improve. These factors combine to lower mortality rates compared to the winter month when the cold and lack of sunlight negatively impacts our immunity and health. Based on The Journal of Steroid Biochemistry and Molecular Biology, US death rates are about 25% higher in winter […]
April 19, 2023

Ask the Analyst: What does it look and feel like to sell my funeral home?

Have you considered selling your funeral business but didn’t know where to begin? We understand that the decision to sell can be overwhelming. We asked Jared Tanke to walk us through the process from start to finish. Question: What does it looks and feel like to sell my funeral home?  Jared Tanke: You may have had conversations with your fellow funeral home owner friends, and I am sure the topic of selling has come up. Maybe one of your friends has recounted his or her experience in selling, and you may have heard several buzzwords, including a “multiple” which is very common language when talking about a business acquisition. But what do these people actually go through? What does the process of selling your funeral home look and feel like? It is such a big life event, and there are […]
March 21, 2023

Ask the Analyst: How can I sell my business if interest rates are rising?

If you are planning to sell your funeral home or cemetery business, there are many factors to consider. One that is extremely important in 2023 is the rise of interest rates. Our M&A Analyst, Sierra Heil provides her insight on this vital question. Question: How can I sell my business if interest rates are rising? Sierra Heil: Over the past 20 years, the deathcare industry has undergone significant consolidation. Many industries have become more focused on convenience and value leading to the emergence of large national chains in an industry that at one time was entirely run by independent local providers. As the baby boomer population ages, many people live outside of the areas they were born or away from younger family members, and families often appreciate when firms offer a wide range of services and options for their loved ones. […]
January 26, 2023

Ask the Analyst: Selling Your Business in 2023

Is one of your goals for 2023 to sell your funeral home or cemetery business? While we are still in the first month of the year, there are various things you need to start now in order to make the transaction a success by the end of the year. Our Senior M&A Analyst, Jared Tanke is back to provide informative insights and the steps you need to take to get the transaction process started. Question: It is my business goal to sell our funeral home in 2023. What do I need to do now? Jared Tanke: To sell your funeral home in 2023, you should start by assessing the current market conditions and determining the value of your business. This is a service that Foresight recommends to all of our clients who are looking to sell, so you can have […]
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