Operations
A buyer replaces the owner with a licensed manager. The difference is a real add-back; the salary itself is not.
Personal vehicles, family payroll above value, one-time legal, non-business travel and insurance.
If the real estate transfers with the business, market rent is normalized out. If it does not, the buyer pays it.
Assets, Preneed & Structure of the Sale
An owned retort protects margin as the cremation rate climbs and is worth a real premium to a buyer.
From the Preneed Funding Analyzer. This comes straight off the price in any competent diligence.
Valuation & Deal Terms
Independent single-location firms generally trade in the four to seven range on adjusted EBITDA, higher with owned real estate, an owned crematory, and a funded preneed book.
Indicated Value
Buyer's Test
Bridge, Methods, Sources & Uses Pro
Earnings Bridge
Valuation by Method
| Method | Low | Midpoint | High |
|---|
Sources & Uses at the Midpoint
Coverage Sensitivity
Debt service coverage across purchase multiple and interest rate. Below 1.25x most lenders decline.