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Written by Wendy Russell Wiener, Managing Member, WRW Legal and Liz Apolonio, Legal Administrative Assistant, WRW Legal
Target identified – CHECK! (with the help of Foresight, of course!)
Letter of Intent – CHECK!
Due diligence complete – CHECK?
Asset Purchase Agreement – CHECK!
Closing – NOT SO FAST!
So many states require prior approval of a change of ownership of a cemetery, funeral home or crematory; yet so many buyers and sellers overlook the requirement in their rush to the closing table. Every week clients approach us at WRW Legal to help them secure approval from their state regulator for the change of ownership they have planned. Recently, we were lamenting, if only there were a way for us to get the word out that getting those applications in early is crucial!
What you should know and do:
- Know your state’s law! Ascertain whether your state requires preapproval or post-closing notification of a change of ownership.
- IF preapproval – we recommend you begin work on the applications 6 months before the date at which you expect the regulator to approve the application. “Six months?!” you say! Yes, that early. That early start will give you the time you need to gather the various documents that often must accompany a change of ownership application.
- Most states require submission of an application at least 60 days before it will be approved. BUT, we say that’s not enough time. Instead, shoot for submission 90 days out. States generally have a period of time to review applications and identify deficiencies and if you don’t learn of a deficiency until too close to the date on which you need approval, you might be out of luck!
The Takeaway: Start Early! It will payoff whether you’re the buyer or seller!