Buying and Selling a
Funeral Home or Cemetery

Trust in Foresight

Why Choose Foresight for Selling your Business?

Navigating the Sale of Your Funeral Home or Cemetery

The business representation process is set up in phases. Often these phases run concurrently, not consecutively. Foresight’s Transaction Team will work with you during the entire process.

• • Preparation, Valuation and Exit Strategy Development
    We begin with an onsite visit and by assessing your business’s value by conducting a thorough valuation analysis, which considers factors such as historical performance, growth potential, industry trends, and comparable transactions. If our conclusion of value does not align with your succession planning targets, we can show you how to build value and implement a strategy to meet those targets.

  • We will work with the seller to develop a clear and effective exit strategy. This strategy outlines the goals, timeline, target buyers, and preferred deal structure.

• • Confidential Marketing and Buyer Identification
    The Transaction Package or Confidential Information Memorandum (CIM) is created to solicit indications of interest from qualified potential buyers who sign a non-disclosure agreement (NDA). It is a comprehensive professional summary of your business designed to convey important information and provide potential buyers with detailed operating and financial information. A CIM will highlight the business’s strengths, financials, market position, and growth prospects while maintaining confidentiality.

  • We identify and screen potential buyers by using our network and resources to find buyers who align with your objectives.

• • Letter of Intent
    The Letter of Intent (LOI) is a nonbinding document drafted by the buyer of your business. It will outline the terms of the sale and price agreed upon by the seller and the buyer. The official signing of an LOI is the first step moving the transaction from informal to fully executed. It is vital that the LOI contains enough detail that everyone involved in the sale fully understands what is written. The LOI sets the tone for the rest of the sale process, so it is important to do it well and limit any errors or discrepancies.

• • Due Diligence and Asset Purchase Agreement (APA)
    Due Diligence is a process that involves a comprehensive examination of your business by a buyer. Foresight will help manage the flow of information to ensure a smooth process.

  • Examples of Due Diligence include third-party inspections, property analysis, inventory lists and reviewing pre-need contracts. Your buyer will also request access to your financials and other records before finalizing the deal. The buyer may request copies of all leases, contracts, and loan agreements. Given the nature of our profession, an environmental and insurance audit may be required.

  • While the Due Diligence is being completed, you and the buyer will begin to negotiate the terms of an Asset Purchase Agreement. This is the formal document that outlines the terms of the transaction, and any accompanying contracts such as non-competes and consulting/employment agreements if you desire to have a role within the business post-sale. It is beneficial to have an honest discussion with the buyer about your goals before the deal is finalized to make sure there is a mutual understanding.

  • Once both parties have agreed on the APA, it will be signed by both parties. The agreement will detail the date of the final transfer of business ownership and when the seller will receive the funds. With a signed APA, the buyer can then work on obtaining any third-party financing if needed.

• • Closing & Funding
    With a signed APA, and completed Due Diligence phase, the Closing process can begin. It is time for the business to officially change ownership. This is handled by both parties’ attorneys. At closing, the buyer will make any cash payments agreed upon typically by wire transfer.

The Buying Process for a Funeral Home or Cemetery

Why Choose Foresight for Purchasing a Business?

• • • Confidentiality is paramount to Foresight. We safeguard sensitive information.
    • We perform a market analysis to identify a business to purchase based on your targeted goals and objectives.
    • The Foresight team will perform a comprehensive analysis of the quality of business you are looking to purchase and surrounding market.
    • We will provide a complete valuation of the business and any real estate involved.
    • If needed, we can underwrite your financing needs and identify the best lender and terms to obtain the capital needed to acquire the business.
    • As your acquisition advisor, we will present a logical offer to the seller and their counselors.
    • Foresight will be able to recommend attorneys who have experience in this industry and making acquisitions.
    • Our team will coordinate the due diligence needed by the buyer and their lender to get the deal closed.

As experienced funeral and cemetery consultants we know what needs to be done to facilitate a successful business acquisition.

Navigating the Purchase of a Funeral Home or Cemetery

Foresight’s Transaction Team can facilitate the process of buying a business. Here is how we can assist throughout the acquisition process:

• • Target Identification
    We start by understanding your objectives, risk tolerance, geographic preferences, and financial capacity to define acquisition criteria and develop a strategic plan for targeting suitable businesses. This involves evaluating financial data, market trends, competitive landscape, and growth potential.

• • Valuation
    We value the target business. This involves analyzing financial statements, historical performance, future earnings potential, and comparable transactions in the industry. We will help you determine a reasonable purchase price.

  • Following an agreement of value, we can help our clients with a draft offer letter that they can present to the seller.

• • Negotiation and Deal Structuring
    The Foresight Team will help negotiate the terms of the deal, including the purchase price, payment structure, warranties, representations, and other contractual details. Our goal is to secure favorable terms for the buyer.

  • Depending on your goals, we can assist you and your attorney or CPA in structuring the deal. This might involve determining whether it’s an asset purchase or a stock purchase, considering tax implications, and deciding on any contingent payments or earn-outs.

• • Due Diligence
    Due Diligence is a process that involves a comprehensive examination of your business by a buyer. Foresight will help manage the flow of information to ensure a smooth process.

  • As part of the diligence process, we will assist our clients with an onsite visit so we can tour the properties together. We will guide you every step of the way, so you feel confident with the purchase.

• • Financing Strategies
    If financing is required for the acquisition, we can assist in exploring various financing options, such as securing loans, equity investment, or utilizing the investor’s existing resources.

• • Post-Deal Support
    Even after the acquisition is complete, we can continue to provide guidance and support as the new owner works to achieve their strategic objectives and optimize the newly acquired business.

Our expertise can significantly increase the chances of a successful and profitable acquisition.

You can trust the Foresight team to guide you through the business transaction, selling or buying process. Our goal is to get the right deal completed with a pathway to success for your future. Whether you are buying your first business, helping your parents retire, or adding a business; it takes Foresight to see a brighter future. Reach out to us today to discover the Foresight difference.