Business Valuations

Funeral Home Business ValuationsLong gone are the days of corporations paying $15,000 per call for the purchase of a funeral home. The buying spree is over, and you may not be able to wait for the death-rate-boom to increase the value of your firm.

For Sellers: A business is a business and an investment is an investment, so the $ / call valuation methods are gone. To maximize your funeral home’s value, have a complete valuation and future projection conducted.

For Purchasers: Investigate the offer to see if it is reasonable and takes into account future demographical changes for the market. Also, a well formulated valuation can serve as a benchmark for future performance to ensure that your investment is on track.

What can a Business Valuation can do for you?

In regards to conducting a valuation of an existing business, the overall objective would be to arrive at a value of the business as it is today and its current operating methods and procedures.

Besides the end result of a dollar figure, this document will provide additional future value in the areas of:

  • Market analysis: Demographics and projected growth rates and death rates for each service area
  • Competitors analysis: Profiles, price lists, and market share of the various competitors
  • Preneed audit: An analysis on the status of the current program, rate of turnover, and anticipation of future under producing contracts
  • Staff: Profiles, age, experience, and areas of expertise
  • Capital expenditures forecast: To aid in budgeting purposes and allocate future requirement of funds
  • Benchmark for future performance: Provide a guiding map to measure at any point in time the performance of the investment

Without a formal business valuation, one would just be guessing – and that’s no way to makea sound business decision whether it is the first or the last.

If you would like to know more about how a business valuation can benefit you with your current funeral home or your future funeral home, please call 1.800.810.3595.