According to this February article from Sharecafe of Australia, public funeral home consolidator and operator Propel Funeral Partners recently has executed agreements on the purchase of two historical funeral homes in New Zealand.  According to the article it brings the company’s operations up to 198 facilities which includes 38 cremation facilities and 9 cemeteries.

According to the same article, Propel has entered into these agreements with:

• Twentyman’s Funeral Services and Thames Crematory which has operated since 1867 and includes a pet services division also.
• Richmond Funeral Home and Claremond crematorium, a Death Care provider since 1887.

The article from Sharecafe also makes this statement, “Together, these businesses conducted approximately 600 funerals last year, generating $AUS 3.7 million in revenue  ($US 2.34 million). They operate across seven locations, with Propel acquiring three properties outright and leasing the remaining four, with purchase options available on three of them.”

The article and this article on the subject transaction from Grafa lists the total potential acquisition cost once metrics are met as $AUS 7.3 million ($US 4.62 million).

Related —  Propel Funeral Partners website

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  I like to find these type of “transaction” articles because it helps me in looking at the valuations in the Death Care business.  I’m no expert on funeral home transactions and current prices but I do try to look at the numbers to keep somewhat abreast of what I can learn about funeral home values.

First of all, you can tell that the properties are more than likely highly cremation facilities because the revenues listed are US $ 2.34 million.  We are also given the data of about 600 services annually between the acquired firms.  That would make their Revenue per Case come out to a number near US$ 3,900.  In my opinion, that number would be a number indicating a high number of cremation services.

Secondly, when you look at the purchase price of US $ 4.62 million for an annual revenue of US$ 2.34 million it comes out to a purchase number that is roughly twice the annual revenue (1.97x).

Again, we don’t know the value of the property included in the sale, but it does give us a data point to look at.

If, and when, you decide to either sell your funeral home and/or purchase an additional funeral home, the more data points that you have knowledge of is helpful.  However, it is impossible to get a great handle on these sale numbers if you don’t know the total equation  — that is real estate value, average case sale, etc.

That’s why having an experienced team in your corner that does mergers, sales, and acquisitions every day is so valuable.  If you are ever looking for that type of help look no further than my friends at Johnson Consulting Group.

More news from the world of Death Care:

• Funeral Inquiry:  Families consulted over monuments.  BBC News (Great Britain)
• Bridgeport funeral director urges families to be prepared for final costs associated with death.  Video news story and print article.  News 12 Bridgeport (CT)
• Chinese tourists steal cremation urns on visa-free Jeju Island, demand $2 million ransom.  W.E. Express (Vietnam)

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