Federated’s Advanced Planning Department has assisted hundreds of funeral home owners with comprehensive and effective succession planning.  Drawing upon years of experience and an unmatched knowledge of the funeral profession, we formulate a strategy to assist you with the transition of your business to family members, business partners, key employees, or other funeral home operators.

The key component of effective succession planning is preparation.  While an approaching retirement is an obvious reason to consider succession planning, we believe that every funeral director should have a plan in place to deal with unexpected life-changing events.  In addition, the information gathered during this process can help identify areas of your business that can be strengthened in preparation for the eventual sale of your funeral home.  The new strategies you implement will ultimately serve to maximize the value of your funeral home.

A successful plan should also be an ongoing process that is adaptable to constantly changing situations in your life and outside forces on your market area.  Children may decide to enter or leave the profession.  Key employees may emerge as potential successors.  Consolidators, new developers, and/or discount operations may enter and impact your local market area.  All of these issues and many others can alter your succession planning.

Whatever the reasons for your succession planning, our Advanced Planning Department will strive to ensure that you are rewarded for your lifetime of work.  Our specialists in the funeral profession pay special attention to potential tax consequences, legal issues, and securing a fair and equitable return on your investment.  We help facilitate your succession plan by coordinating efforts with buyers, attorneys, and other parties that may be involved.  Federated can even assist with identifying potential buyers and recommending financing options.  Our team of experts will guide you through the entire process by providing a clear and concise plan that covers everything leading up to the sale, the sale itself, and most importantly, maintaining your quality of life after the sale.

Our "Business Succession Plan" includes the following: Formal Business Valuation Suggestions for Business Transfer Cash Flow Analysis for Buyer Income Tax Analysis for Seller Suggestions for Required Legal Documentation Assist Attorney with Documentation & Review Drafts

Our pricing is as follows:   "Family" Deal (Buyer & Seller are "blood relatives") = 3/4% of 3-year Average Gross Revenue (minimum $5,000 fee)   "In-House" Deal (Unrelated parties, seller finds buyer, etc.) = 1% of 3-year Average Gross Revenue (minimum $5,000 fee)   "Outside" Deal (Federated finds buyer, makes presentations, etc.) = 2% of 3-year Average Gross Revenue (minimum $5,000 fee) * Payment terms are 25% with engagement letter, 40% with presentation materials, and 35% balance at closing.  (Travel expenses, including Field Representatives, will be billed separately and reimbursed upon receipt by FFDA.)

 

For more information, call 1-800-877-3332

 and ask for the Advanced Planning Department.