|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
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, AFC will work in conjunction with the attorneys of both parties, to 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.
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.
Development and Preparation of Definitive Agreements
AFC will assist in the preparation of and/or review the following agreements in collaboration with your attorney:
||• Property Transfer
Review Legal Work
If desired, AFC will recommend an attorney specifically recruited for the preparation of your legal documents. In every transaction, both the sellers and the buyers should be represented by independent legal counsel and financial advisors.
AFC works with your accountant, contract lawyer, tax attorney, and other support personnel in a coordinated team effort.
Due diligence must be conducted according to the requirements of the buyer and the buyer's lender. AFC will assist sellers, buyers and attorneys in the process of gathering all of the required information.
AFC aids in the coordination and implementation of the actual Closing, bringing the cooperative offorts of everyone involved in the project to fruition.
After a closing, AFC provides follow-up support as needed. You are always welcome to contact us for advice or suggestion, or just to share concerns. We will assist in whatever way possible over the years to come.