July 27, 2023
Published by 
Dan Isard on July 27, 2023
Dan Isard on July 27, 2023Being born into the deathcare business is the way that most of the owners and leaders of cemeteries and funeral homes chose their careers before 1970. Almost 75% of cemeteries or funeral homes were transferred from family member to family member. Families that wanted to increase the odds that the next generation would take over the business had large families. But family or not, those who chose to come into the cemetery business started in one of three career paths: outside, administration, or sales. If you were a kid who didn’t like sales, then it was either wear the outdoor uniform or sharpen your pencil. In thinking about the future, I am going to focus on the path to working with a cemetery more than on the path to working in the funeral services business. That said, it should be […]
July 27, 2023
Published by Dan Isard on July 27, 2023
Dan Isard on July 27, 2023As I explained in last month’s column, key performance indicators (KPI) are simple mathematic equations that can help you run your business. When calculating these analysis points, the results are usually shown as a fraction, but if you divide the numerator (the top number) by the denominator (the bottom number) and multiply it by 100, you end up with a percentage. For example, let’s say you want to determine what percentage of your revenue your auto expenses take up. If your total auto expenses are $50,000, and your revenue is $1,000,000, then that fraction is written as 50,000/1,000,000. If you divide the numerator by the denominator (50,000 ÷ 1,000,000) and multiply the result by 100, the percentage is 5%. Now, knowing whether 5% is good or bad business-wise is another story. That takes a frame of reference, and I have […]
July 19, 2023
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Foresight on July 19, 2023
Foresight on July 19, 2023The landscape of SBA loans has undergone significant changes, bringing about exciting opportunities for the funeral home and cemetery profession. Equity injection requirements have been revamped, simplifying procedures and guidelines, and allowing for the 10% equity requirement to be totally met with a seller carry. The SBA has also reduced red tape and clarified affiliation standards, providing fair access to capital. Furthermore, the personal resource test has been eliminated, and lending criteria for creditworthiness have been streamlined. In this blog, we will explore how these changes impact funeral home and cemetery owners, highlighting the benefits and opportunities they bring. Rules have changed around equity injection Equity injection is new cash or other acceptable assets added to the project that is not on the borrower’s balance sheet prior to the equity injection. The most important element of this (especially for 1st […]
June 27, 2023
Published by 
Nicole Vullo on June 27, 2023
Nicole Vullo on June 27, 2023Written 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 […]
June 27, 2023
Published by Dan Isard on June 27, 2023
Dan Isard on June 27, 2023We all look to compare ourselves to others. In the world of business, we can only do this by relying on a common set of indicators. These indicators are called Key Performance Indicators or abbreviated as KPI’s. In the cemetery business, there are only a few reliable KPI’s.I have studied this phenomenon for 40 years. As I reach the end of my career, I feel compelled to raise the subject and explain why it is so. Here Comes the Math KPI’s are expressed as a percentage. As you remember from seventh grade algebra, the percentage is computed from a ratio. To understand the KPI for overhead, you have a nominator that is the Expense over the denominator which is Revenue. Therein is the problem of establishing a KPI for cemeteries. The Revenue is inconsistent because some cemeteries have an emphasis […]