Business Succession Planning for Funeral Homes and Cemeteries
If you are actively considering how to pass your funeral business to the next generation, it is time to start planning now!
Without a strategic plan in place, you run the risk of dealing with multiple challenges and obstacles, such as:
- a lower than expected sale price
- a complicated or encumbered transition to new ownership
- staff turnover
- the loss of your hard-earned heritage within community.
When working with a client on their business succession plan, our approach is to work closely and confidentially on all phases of the transaction. Our goal is to listen first and then offer solutions best fit for you and your business. We strongly believe that each family business has a unique culture. This requires a customized approach to allow for the best plan that will be mutually agreed upon and thoroughly implemented resulting in long-term value for all parties. Having a well thought out succession in many circumstances, will increase the value of your businesses. Without a well-crafted succession plan, you run the risk of financial insecurity and tarnishing your funeral home or cemetery’s brand.
We understand that the process can be overwhelming. You may ask yourself, “How do I start?” These are the key elements to beginning your business succession plan:
- Consider your timing. It is never too early to develop a succession plan and it does not happen overnight. A profitable business succession plan begins at least five years in advance of your exit. This timeframe will allow for appropriate time to implement steps to plan the succession, as well as maximize the value of the business.
- Think about your options for selecting a buyer. A successful funeral home or cemetery owner has developed a high level of trust within their community. Honorable reputations and track records takes years of first-class service and a strong sense of dedication to the community. It is important to identify a buyer who is outfitted to continue the traditions of your business. Options for potential buyers include family members, veteran employees, and other funeral directors or funeral home owners in your community. Another path to consider is to also engage with a respectable consolidator.
- Start expanding the value of your business. Your business is valued based on the cash flow that your funeral home or cemetery produces. Knowing the true value of your business defines the price you are seeking to obtain. This will also allow for you to make necessary modification to improve on the value.
Why Choose Foresight for Your Business Succession Planning?
At The Foresight Companies, we are passionate about the funeral and cemetery profession and are strong advocates of independent ownership and fostering the next generation of leaders into the funeral profession. Our singular focus is our client’s success.
We provide efficient business solutions for independent businesses of all sizes and have the ability to maintain confidentiality, credibility, and trust of our clients. Our track record demonstrates that we convert business analytics into business success. We advise our clients using both experience and technique on strategies to improve their profitability, grow their business and ensure a brighter financial future.
Being able to assist owners with their succession planning and providing a partner to help further grow their businesses and extend their legacies sets The Foresight Companies apart and makes us the solutions partner of choice for many funeral home and cemetery owners. We offer open and honest advice throughout the entire process and support you every step of the way.
Let’s have a discussion about your succession plan; give us a call or Contact us today to get started.