Custom Casket Company - The Southern Funeral Director Magazine

More documents

Recommendations

Info

14 Selling Your Business Made Simple By Daniel M. Isard, MSFS Picture you are at your high school reunion. Imagine you are addressing the class of peers you have known for your lifetime. Can you feel the tension going through your body and soul? Can you imagine the anxiety leading up to this moment? Now, imagine you are totally naked and there is no podium. That is the same feeling you will have when you get ready to sell your business. Is this a metaphor or a Freudian example? I don’t know. I do know that different people handle the matter differently but the better prepared someone is, will result in a better outcome. The first thing you have to do is to decide if you are going to represent yourself or use a qualified M&A Consultant. Notice, I used the phrase qualified. There are many scoundrals out there. Some call you up and say, “I have a buyer for your business”, but of course you have to retain the caller. No! If an M&A Consultant has a buying client that client is going to pay them for their efforts, not you. Some are local real estate people that have no idea of what the value of your business is or even what the usual and customary terms of a sale would be. There is a difference in a qualified and non-qualified advisor! Qualified Advisors (“QA”) have fees for their services. The fee’s can range from 7% of the sale price to something less. Often there is a decreasing fee. It could be 7% of the first $2,000,000 and then decrease by 1% each $2,000,000 thereafter. Some will charge an hourly rate before closing but back out that hourly rate from the closing fee. They do that to keep their objectivity. I know that there have been some clients I have had to tell them not to continue to close on an offer. By charging this hourly rate, we were paid for our time to date. We are not just paid at the closing. I am able to retain my objectivity this way. You should ask if a QA can earn their fee. In many cases the answer is yes, several times over. Any advisor is paid for their time and experience. The QA has more applicable experience which should result in a better result. There are several ways in which a QA pays for their fee. The Southern Funeral Director w Alliance NFDA & CANA Pre Convention 2011 • Time to get the deal done. There is a matter of confidentiality and at some point the confidentiality is going to get blown by someone. The QA is usually able to get the deal done quicker as they know how to move the transaction along. • Legal and Accounting fees. We have done more than 500 transactions. For us to do the tax analysis takes very little time. For the legal issues, if someone doesn’t know the funeral or cemetery profession it is filled with unusual legal concepts that have to be memorialized in a sale document. We can usually get a better document sooner and get your lawyer to the closing table with fewer costs. • Get more value. We know how to negotiate to get the most value and get it in the most secured fashion. This is a direct reward to the client by putting more money in their pocket. Your second step is going to decide who to invite to your dance. There are usually national and regional operating companies that might have an interest in being your successor. There may also be local and regional competitors that should have an interest in your business. You want to decide who you are willing to sell your business to and if there is anyone that you will not sell to. Once you get that list made, then you can move forward. When you get ready to sell your business you are vulnerable. You are going to be showing the intimate financial and operating details of your business to strangers and maybe some people that were heretofore competition. It is one thing to claim you sold three bronze caskets at the bar at a state convention but it is another thing to prove it in your financials. You want to have a Non-Disclosure Agreement in place with all receiving your data. In some cases you are going to want to have a mutual disclosure from them as well, to prove that they are financially able to secure the financing for the transaction. A Non-Disclosure Agreement is important to protect your confidential information and even the fact you are considering selling the business. It is especially important when you have a buyer’s data as well.
s Bio Cremation? However, like many simple agreements, this one is an tthews Cremation agreement Division of honor. Anyone wanting to violate the in many cases by making changes and correcting the negative points. ead up to the agreement final development can do it, so bones it must are be heat entered created with by people a chemical fuel (CH4 natural sary legislative you changes consider required to be honorable. gas or C3H8 propane gas) mixed with Getting oxygen. the With offers Bio is the next step. You need to tell ss on a new cremation process Cremation, the transition takes each approximately buyer what 2-3 are the terms and conditions that you .” Bio Cremation If you knew utilizes you were a going hours to and be the naked catalysts as a Jay to reduce Bird, the want body and to bones what terms, are if any, you won’t accept. For emperature you cremation would chamber go to the gym water and (95%) work out and for a months chemical, or potassium example, hydroxide your employment after the sale should be alkaline hydrolysis maybe even to reduce years before (KOH). you All stepped of these on choices that stage. begin with laid a out. body If and you even- want to be employed in an accountable basic elements. You would trim fat and tually build ends muscle. with bones. If you With know the introduction fashion, of this Bio should Cre- be spelled out. Accountable that you are going to sell mation your business, we canyou need to means you are going to actually work for your pay. is reducing the do preparatory body to its basic actions determine long in advance theof the event. In all cases someone is going to be available to ents through You the need use to of trim heat. some expenses residual effects and build-up our revenue. ssociation of The North time America, for an appraisal is end of is before life decision you are ready to most respected sell. authority We find that on all in our will appraisal have practice on the we not only has progressively tell someone defined the cre- value planet. but why the value is what it is. cal and/or thermal We demonstrate or other dis- those matters that are adding to your duces human remains to bone It is important to value and those which are hampering value. This is tion technology replaces the address a few com- the last chance to eliminate those negatives. I have ilization of water, blended with mon misnomers tassium hydroxide seen value (KOH). increase The 20% to 30% within six months when describing to a presremation nd alkali d and the ease the transition between owners In some cases you might make yourself available for consultation only. Spell that out. Bio Cremation. First water based cremation p Health insurance benefits are a big issue. If you are water is an alkaline call going to need them post closing, specify which what is you a colorless in expect and for how long. Most people many that industrial, need comme them only need them until they qualify for KOH Medicare. is noteworthy as a However, this becomes aids, cosmetics, an pharma issue if you are a cleaning consultant supplies you w and the buyer is For a Bio small Cremation, i operator. You want exothermic, to make meaning th o 350°F. certain that you have heat benefits, which contributes t and high- not just a card saying of the human you tissue in harmony have coverage. If Another you have misconception he body, egins and process. not many we envia human ithin the cess, the scapable. will take ur end of e cremaoCrema- benefits you often body, have which to is false. Thi be working for some trolled period and sophisticat of time each week combines or in water, alkali, h the course of a year. biochemically Large hydrolyz bone fragments. companies may actually have a category of employment During a typical Bio Cre known as “former owners”, duced, bone fragments a and they don’t product have is a a sterile eff requirement on employment. process so environmen Small buyers may need than flame to get based crema something worked air out emissions with (particula their insurance company monoxide, so mercury, etc you don’t get left The with by-product some (effluen ill be the unpaid claims. to water recycling wher between cycled back into the e n or Bio Once a Letter of aquifers, Intent is lakes, streams transition proposed, make essence, sure you our body is rec lyst” we know what the Seller’s transition e catalyst nes is soil ith flame takes apand the body to obligations are. Usually a LOI gives the buyer a limited time to close the transaction. You will usually want to include language that if financing is needed they have a limited period to demonstrate they r � Alliance Cremation 2011 The Southern Funeral Director w Alliance NFDA & CANA Pre Convention 2011 15
Page 1 and 2: NFDA/CANA Convention Preview 2011 w
Page 3 and 4: NFDA/CANA CoNveNtioN FeAtures 6 NFD
Page 5 and 6: In The Midst of Uncertainty Doric H
Page 7 and 8: I"*"'
Page 9 and 10: Do Good While Having Fun at the 201
Page 11 and 12: -6="97+"(.&\.\I+8?6#4@7"A7+47B718#8
Page 13: www.southerncraftmfg.com info@south
Page 17 and 18: The Southern Funeral Director w All
Page 19 and 20: It was proposed that Mr. Tseng be c
Page 21 and 22: Mansfield 27 Select Hardwood Steadi
Page 23 and 24: The first critical factor in develo
Page 29 and 30: June - July 2011 SFD:- 9/20/11 1:02
Page 31 and 32: INDUSTRY NEWS James V. Andrews, Jr.
Page 33: Geisen Funeral Cremation & Receptio
Page 36 and 37: 36 INDUSTRY NEWS Photo of Curtis El
Page 38 and 39: Cemetery / Funeral FUNERAL DIRECTOR
Page 40: T O M O R R O W ’ S V E H I C L E

Custom Casket Company - The Southern Funeral Director Magazine

Create successful ePaper yourself

Delete template?

Save as template?