Selling a business of any kind is a complex process, one that requires patience, planning, and fortuitous timing. And when it comes to selling a funeral home, you also face the issues of finding qualified buyers and determining the appropriate value of your business––tasks that can prove difficult for those unfamiliar with the death care profession.
Once you’ve finally decided to put your funeral home up for sale, you’ll have two options–selling alone or using a funeral home broker. While going it alone can save you money, only a funeral broker can connect you with qualified buyers and ensure proper valuation of your business. Let’s break it down.
Selling Alone
Similar to selling your house without a real estate agent, you can also sell your funeral home on your own. Keep in mind, however, that this process will take a lot of heavy lifting.
Pros
- Cost savings: Funeral home brokers generally charge a 1-5% commission on the sales of businesses. Additionally, they’ll likely charge an additional $1,000-$2,000 for the valuation. Selling your funeral home without a broker will almost surely cost you less.
Cons
- Vetting buyers: One of the biggest time wasters when selling a funeral home is finding a qualified buyer. Without a broker, you’ll have to take on all of this work yourself.
- Lack of knowledge: While any funeral director undoubtedly has an encyclopedic knowledge of operating a funeral home, selling one requires a broader knowledge of the profession and prices. Without a funeral home broker, it will be difficult to negotiate properly.
- No team to advocate for you: Business sales seldom come without extensive negotiations. Because of this, you’ll want an expert in your corner to get you the best possible deal.
- Overworking yourself: Your funeral home can’t shutter while you try to find a buyer and close a sale. This means that your daily duties as a funeral home director will have to happen concurrently with selling your business, a workload that can overwhelm even the most experienced directors.
Using a Funeral Home Broker
From finding and vetting buyers to securing the specifics of a deal, funeral home brokers play an integral role in the successful transfer of businesses. While they do come at a cost, they’re the surest way to obtain a fair deal in a prompt manner.
Pros
- Spotting red flags: From unqualified buyers to unclear accounting on your end, funeral home brokers can spot any issues that might hinder a successful sale and help you correct your course.
- Providing additional resources: Funeral home brokers are the best way to get connected to qualified and interested buyers. Additionally, they’ll have trusted contacts for business valuations and accounting issues.
- Knowledge: As a funeral director, it’s important to consider when it’s the right time to sell your funeral home. A dedicated funeral home broker will have knowledge of the death care marketplace that allows them to inform you of the optimal timing for a sale.
- Mutual benefit: While funeral directors come at a cost, their fees are a commission on the sale of your business, meaning it’s in their financial interest to secure you the highest price possible.
Cons
- Higher costs: A business broker will charge a commission on the sale of your business. Additionally, some business brokers require a retainer fee.
- Difficult to find: Depending on where you live, finding a business broker who specializes in the death care profession can be difficult.
The Best Option
When compared to other industries, the world of death care is highly unique. Not only are a majority of funeral homes family-owned and regional, but the profession itself is currently experiencing unprecedented changes, making it all the more important to find someone who knows the funeral business and has a proven history of successful transactions.
Johnson Consulting Group, one of the nation’s largest funeral home and cemetery consulting firms, is the one-stop-shop for selling your funeral home. Their consultants can take a holistic look at your business, answer any questions, and help you prepare for a sale. Their accountants can help you get your finances up to par, and their brokers can connect you with a vast network of qualified buyers, ultimately securing you the best possible deal.
And while funeral home brokers come at a cost, they’re the best way to ensure you get a fair deal. Selling your funeral home by yourself will not only take up your time, but will also leave you vulnerable to accepting unfavorable deals.
SELL YOUR FUNERAL HOME