American Funeral Consultants specializes in Funeral Business Buy/Sell Intermediary Services, handling the negotiations for the sale or purchase of funeral homes. The principals of AFC have negotiated the sale and/or purchase of businesses ranging in size from under 30 to over 2,000 calls per year throughout the United States.

As an Intermediary, AFC helps establish the value of the funeral firm and then represents the buyer or seller as a professional negotiator in the sales transaction. We assist in arranging financing, confer on contract preparation and sale agreements, advise the client on the strategy of the negotiations, and execute the appropriate steps to close the deal, negotiating the best possible transaction. We strive to bring the parties together to complete a transaction that is fair and satisfactory to both the buyer and seller.

AFC is able to close profitable deals by clearly establishing business value, understanding today’s funeral industry climate, and utilizing proven negotiating techniques, thus maximizing the potential of each sale or purchase.

As an Intermediary, American Funeral Consultants works collaboratively with sellers and buyers to execute successful sales or purchases. When representing a seller, every aspect of the transaction, from start to finish, is included as part of AFC’s service. However, when representing a buyer, a client may choose to have us carry out any or all of them.

Preparation of a Working Document
For the Seller:
As a first step toward the sale of a funeral home, AFC values the firm and prepares an Offering Prospectus, a document which presents a detailed description of the firm, a community market analysis and demographic information for the communities served, and three years of financial data. In addition, a Pro Forma, which is a set of projections of potential earning capacity based on historical financial data, industry standards, and AFC’s expert judgment is prepared to offer guidelines for prospective buyers in developing an offer. This Prospectus is distributed to potential buyers who

have signed a Letter of Confidentiality to provide them with the information needed to make a decision about a purchase.

For the Buyer:
As a first step toward the contemplated purchase of a funeral home, an EBIDT (Earnings Before Interest, Depreciation, and Taxes) Report is carried out to value the firm. The EBIDT Report specifically determines a range of purchase prices that are fair and reasonable for the business by utilizing a firm’s earnings as the basis for establishing its value. This can also be submitted to potential lenders for use in evaluating the firm for financing.

Locating a Buyer or Seller
AFC serves as the “go-between” with all prospective buyers and sellers, enabling you to concentrate on operating and maintaining the quality of your business throughout the sale or purchase process.

For the Seller:
AFC has working relationships with all of the publicly traded companies, as well as large private, smaller individual, and local buyers throughout the country. We screen the preliminary interest of prospective buyers and obtain signed Letters of Confidentiality before providing them with relevant information prepared concerning your firm. AFC determines whether or not the potential buyers meet the qualifications for the transaction.

For the Buyer:
AFC will pursue a potential seller identified by you to determine their level of interest in selling, or we will seek to find a firm for sale that might be of interest to you.

Negotiation and Preparation of a  Letter of Intent
For both sellers and buyers, American Funeral Consultants serves as a Negotiator, preparing and presenting a formal offer, counter-offers, etc. Once a fair and reasonable offering price is determined, in conjunction with the attorneys of both parties, AFC will prepare a formal Letter of Intent for presentation to the seller of the business. AFC then negotiates between the parties in collaboration with their attorneys to determine and procure the most desirable terms and conditions, including such factors as the form of consideration received at closing (e.g., cash, holding paper, CNC payments, etc.) and the tax ramifications of each element of the transaction.

Financing
AFC will assist the buyer in obtaining financing for the purchase by initiating contacts with finance institutions and providing the necessary financial and business information. If required by a potential lender, we will prepare a formal Business Plan on behalf of the buyer.

• Purchase
• Property Transfer
• Non-Compete
• Consulting
• Employment
• Management

AFC works with your accountants, contract lawyers, tax attorneys, and other support personnel in a coordinated team effort.

Fees
For the Seller:
The fee for our Buy/Sell Intermediary Service is based on a commission structure applied to the final stated sale price of the firm, plus direct out-of-pocket expenses. A non refundable initial retainer of $3,500 is required upon the signing of an Engagement Agreement, which is applied to the final fee in the event of a successful sale. The fee and any unpaid accumulated expenses are due in full at closing. However, should the sale not close for reasons beyond your control, the charge is only for the initial retainer, out-of-pocket expenses, and fees for other professionals retained.

For the Buyer:
The fee for our Buy/Sell Intermediary Service for the Buyer is based on a fee structure which is applied to the net revenues (gross sales less cash advances) of the last full fiscal year of the firm to be purchased, plus direct out-of-pocket expenses. A non refundable initial retainer of $3,500 is required upon the signing of an Engagement Agreement, which is applied to the final fee in the event of a successful purchase. The fee and any unpaid accumulated expenses are due in full at closing. Again, should the sale not close for reasons beyond your control, the charge is only for the initial retainer, out-of-pocket expenses, and fees for other professionals retained.