Valuation Services
Valuations for a funeral home or cemetery
As an owner of a funeral home or cemetery, understanding the value of your business is fundamental to operating strategically and developing a succession plan. If you are considering the purchase or sale of a funeral home or cemetery, your business value is central to the transaction process.
Valuations require a combination of experience and expertise. The team you choose to perform your business valuation must have in-depth knowledge of the funeral and cemetery profession and the current market. Two identical businesses in two different locations may result in very different valuation conclusions.
Since Foresight was founded over forty years ago, we have performed more than 3,000 funeral home valuations and more than 1,000 cemetery valuations. In addition to performing valuations for conventional business transactions, we also complete business appraisal services for buy-sell agreements and for those planning to transfer their business to a family member or key employee.
A business valuation is a fundamental component to crafting your strategic operating plan. The Foresight team provides an analysis of business value for clients annually to evaluate and understand the goals, objectives, and targets of their business.
Recognized as a foremost authority in the cemetery and funeral service professions, our team has the knowledge to provide business solutions for funeral and cemetery businesses of all sizes. We use the data from our valuation analysis to advise our clients with both insight and foresight on strategies to improve profitability, grow the business and ensure a brighter future.
Our Valuation Methodology
The number one question a seller or buyer has when contemplating a transaction is “what is the business worth?” There is no easy answer to this question as each business has unique elements to be considered. Factors such as business model, structure and revenue projections are subject to an appraiser’s experience, skillset, and valuation methodology.
When conducting a business valuation, we generate an in-depth analysis of your company to establish your baseline value. We then determine the factors that are driving the value of your business. The value of your funeral home or cemetery must be determined with a view toward the intrinsic value of the assets, the value of its income stream and the fair market value of the equity in the marketplace and real estate if applicable.
The Foresight Valuation Process demonstrates the following:
Asset Value – The market value of the physical assets owned by the business net of any debt owed. This value is combined with the value of the intangible assets of the business (“Goodwill Value”).
Goodwill value – The intangible value of the business based on the certainty of future cash flows. This is determined by multiple factors including historical cash flow stability and current and future risk factors.
Cash flow – Expected cash flows is based on historical performance, business and market trends, and upcoming opportunities or adversity faced by the business.
Ability to finance – Using the expected cash flows of the business, combined with the value of real estate owned by the business, financing feasibility and optimal loan structure can be determined for a sale, acquisition, or partner-buyout scenario.
Factors considered when arriving at our valuation conclusion:
- The nature of the business and the history of the enterprise from its inception
- The economic outlook in general and the condition and outlook of the funeral and cemetery profession
- The book value of the stock and the financial condition of the business
- The earning capacity of the business
- Goodwill or other intangible value
- Sales of the stock and the size of the block to be valued
- The market price of stocks of businesses engaged in the same or a similar line of business having their stocks actively traded in a free and open market
Understanding value can be a challenge for a business owner. There are many moving pieces that factor into the value of a funeral home or cemetery. We consider all essential aspects that influence your businesses worth.
Whether you are thinking of selling now, in the future or just want to understand your business better, unveiling the true value of your business starts with an open and informed discussion. Give us a call or contact us today to embark on this transformative journey for your funeral home or cemetery.