“Serving Those Who Serve Others”
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Funeral Business Management Consultant
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Personalized, Boutique-Type Services for Over 50 Years
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“Serving Those Who Serve Others” • Funeral Business Management Consultant • Personalized, Boutique-Type Services for Over 50 Years •
American Funeral Consultants specializes in Buy/Sell Intermediary Services, personally and expertly handling the negotiations for the sale or purchase of funeral businesses.
AFC has negotiated hundreds of sales and purchases of businesses ranging in size from 30 to over 2,500 calls throughout the United States.
As an Intermediary, we strive to bring all the parties together to complete a transaction that is fair and satisfactory to both the buyer and seller. AFC works collaboratively with sellers and buyers to execute a successful sale. 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 not need all of those services. Thus, our buyer clients are able to choose “a la carte” to have us carry out any or all of the services we can provide.
This is a very comprehensive service and our past clients are the best source of “advertising” for all that we do to make a deal happen.
AFC negotiates the best possible deal for you. Closing such profitable deals has not been the result of trickery or fast talking. Rather, by clearly establishing and supporting the business value, understanding today’s funeral industry climate, and utilizing proven negotiating techniques, AFC is able to maximize the potential of each sale, both in terms of price and terms.
Preparation of a Working Document
As a first step toward the sale of a funeral home, AFC values the firm and prepares an Informational Prospectus, a document which presents a detailed description of the firm, a community market and demographic analysis, three to four years of financial data, historical call volume, pre-need, and more. In addition, we present 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 offers guidelines for prospective buyers in developing an offer. This Prospectus is intended to provide them with critical information needed to make a decision about a purchase.
Locating a Buyer
AFC serves as the “go-between” with all prospective buyers enabling you to concentrate on operating and maintaining the quality of your business throughout the sale process. AFC has working relationships with all of the publicly traded companies, regional acquirers, as well as large private, smaller individual, and local buyers throughout the country. In addition, AFC has a database of potential buyers from which they draw. We screen the preliminary interest of prospective buyers and obtain Non-Disclosure Agreements before providing them with relevant information concerning your firm.
AFC serves as a Negotiator, preparing and presenting a formal offer, counter-offers, etc. Once an offer is accepted, AFC will work in conjunction with the attorneys of both parties, to prepare a formal Letter of Intent for presentation to the seller. AFC then negotiates between the parties in collaboration with their attorneys and accountants 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 works with numerous industry cash flow lenders. We will assist any buyer in obtaining financing for the purchase by initiating contacts with lenders and providing the necessary financial data and supporting documentation and business information. If required by a potential lender, we can also prepare a Business Plan on behalf of the buyer.
Review Legal Work
If desired, AFC will recommend an attorney specifically recruited for the preparation of your legal documents and legal representation. 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
Due diligence is a time consuming process and 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 and collating all of the required information.
Closing
AFC aids in the coordination and implementation of the actual Closing, bringing the cooperative efforts of everyone involved in the project to fruition.
After-Closing Support
After a closing, AFC provides follow-up support as needed. You are always welcome to contact us for advice or suggestions, or just to share concerns. We will assist in whatever way possible over the years to come.
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 travel expenses. Please contact us for a more complete explanation of the fee structure for our Buy/Sell Intermediary Service.
A non-refundable initial retainer of $4,000 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 a Buyer is predetermined based on the scope of the work to be carried out. A non-refundable initial retainer of $4,000 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. Should the sale not close for reasons beyond your control, the charge will be pro-rated based on the actual work carried out and the out-of-pocket expenses incurred.
