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Today we’re digging into an industry that might just surprise you with its lively investment opportunities. Yes, you read that subject line right—we’re talking about the Death Care Industry in the US! Now, before you think we've lost our minds, hear us out.

We wanted to wait until Halloween to talk about this somewhat spooky topic, but we couldn’t wait any longer. While it may seem a bit eerie to some that there's money to be made in death, it turns out that the Death Care Industry in the US is more vibrant than you might think. You don't need to be a grim reaper or a ghost whisperer to see the potential in these undying opportunities.

Let’s put the fun in ‘FUNerals’ and jump in! 

INDUSTRY BREAKDOWN

The Death Care Industry in the US: A Grave Business Opportunity?

Navigating the death care industry in the US is somewhat like attending a sophisticated wake—respectful, meticulous, and always evolving to meet the expectations of today's families. It’s a sector that's alive (pun intended) with potential, boasting a projected market size of $28 billion by 2028, growing at a steady rate of over 4% annually​​. Whether you're considering purchasing a business or simply curious about this solemn industry, now might just be the right time to dig deeper.

Industry Trends

Alright, we know it brings the mood down, but more and more people die each day. There are countless things we do each day that could be fatal, from diseases to summiting mountain (we thought putting a graph of all these things might be a bit of a downer, so here’s the link! 🫶🏼). While that seems sad, it is a natural part of life! And in this capitalist society we have created, this means that people will find a way to make money off of death.

The death care industry is adapting to the modern world. Cremations have seen an upsurge, viewed as a cost-effective alternative to traditional burials, which are facing a decline. Which, when you think about it, makes sense because who wants to put aside thousands of dollars for their burial? The cremation rate, which stood at 56.2% in 2020, reflects this trend​​. This shift is partly due to the aging baby boomer population, increasing death rates, and an emerging preference for environmentally-friendly burial options like biodegradable caskets and virtual grave visitations​​. As well as the rise of 'DeathTech' brings innovative solutions like AI-powered will-writing and online memorials, transforming how we handle post-life care​. Seriously - ‘DeathTech’ is a real thing … we never thought we would see the day. 

The Finances 

The industry has seen a shift from small, family-run outfits to larger, corporate entities. This transformation has ushered in a new era of professionalism and a broadening of services, accommodating everything from traditional funerals to more personalized memorial experiences. Particularly in the Southern US, where demographics drive a higher demand for these services, funeral homes and cemeteries are seeing healthy financial returns. This resilience and robust performance illustrate just how indispensable and enduring this sector is, even in an ever-changing world.

Buy or Bust?

So, should you venture into the death care industry? It's a market that combines tradition with innovation, where respectful care meets modern technology. The steady growth, coupled with the industry's essential nature and increasing demand for personalized and green options, makes it a compelling sector for investment. As long as one approaches with the right blend of reverence and forward-thinking—recognizing the delicate balance between profit and empathy—it could indeed be a worthwhile investment. As long as you don’t get spooked by ghosts… 👻

Check out these Death Care Companies for sale:

1. Established Cemetery Brokers with High Profit in Southern California - $2,705,000

2. Excellent Funeral Director Owner Opportunity in Florida - $825,000

3. Kentucky Funeral Home with Two Locations - $1,950,000

Interested in a particular industry? Reply to this email with the industry you are curious about and keep your eyes peeled in upcoming issues. 👀 

DEAL REVIEW

Multiple Location Funeral Home with Cemetery

This week’s deal is a Highly Regarded Funeral Home Offering Compassionate Services in Arkansas.

Deal Facts 🔥

Green Flags 🟢

• Strong Financial Performance: The business has demonstrated consistent financial stability with yearly revenues exceeding $840K and gross profits around $560K, indicating a well-managed and profitable operation.

• Well-Perceived Brand: The owner’s approach to personalized service has developed a strong brand in the community, which is crucial for steady income and growth potential in the death care industry.

• Strategic Location: Despite being in a rural area, the proximity to several growing regions enhances its competitive edge and market reach.

• Well-Maintained Facilities: Owning two out of three locations with adequate parking and well-appointed chapel spaces ensures control over major assets and reduces operational risks associated with leasing.

Red Flags 🔴

• Market Limitations: The rural setting might limit the market size and the pace of business growth compared to urban areas, potentially affecting the scalability of the business.

• Employee Structure: With only 2 full-time employees and 5 part-time employees, the business might be heavily reliant on a few key staff members, which could pose a risk if there are changes in staff or increased demand.

• Ownership of Locations: One of the three facilities is under a lease agreement, which may involve variable future costs or restrictions, unlike fully owned properties.

• Transition Risks: While the current owners aim for a seamless transition, changes in leadership can sometimes disrupt business operations or customer relationships.

Watch Our Video Breakdown 

For a more in-depth analysis, check out this video deep dive of the deal by our Founder, Morgan Tate:

Possible Deal Structure: This is a pretty straight-forward deal in a competitive industry we would suspect a cash offer (with a small amount of Seller Financing) is required to get a deal done here.

You all thought that IT Services was a snooze in our last edition 😴 with over 60% of you wanting to pass. We all spend our lives in front of a screen, so, although lucrative, we get why you wouldn’t want your career in front of one also.

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

ADVERTISE

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BROKERAGE FEATURE

The Decain Group specialized exclusively in the death care industry, connecting sellers with qualified buyers for funeral homes, cremation businesses, cemeteries, monument businesses, and all other death care services. Operated by licensed funeral directors, their team brings unmatched expertise and ownership experience in multiple facets of the industry. This deep understanding ensures that every transaction is managed with the utmost professionalism and confidentiality. 

Entrust your business sale or acquisition to The Decain Group, where seasoned experts provide tailored guidance to help you achieve your goals in the death care market. Check out all of their active businesses for sale here.

TWEET HIGHLIGHT

While many buyers search for businesses with a hands-off management style, the term “Semi-Absentee” in lights can raise eyebrows, suggesting perhaps more involvement than advertised. However, this isn’t always the case! Some owners have streamlined their role over decades of routine, managing to keep their work hours to just a few a week. This begs the question, “why even sell such a low-maintenance business?”. The answer might be simpler than you think - some people aim for zero hours, not just limited.

Don’t write every, “Hands-Off Ownership” business as false advertising (but do look into what their actual role is… if you call the main business phone and they are the one on the other end of the line, you may want to reconsider 😅).

GOOD READS

Recommended Resources 📚

Below is a list of articles, books, and other resource we recommend for buyers or operators of small businesses!

1. Calling all millennials! 🗣️ Everyyyything is getting more expensive these days, from housing to groceries, gas and coffee, you can’t leave your house without spending $100… so when it comes to propelling your financial goals, purchasing a business seems like a unachievable dream. So we created a guide on how to buy a business with no money down - check it out!

2. Finding a business that you want to buy is hard enough - now you have to think about how to get a loan? This article is laid out beautifully and tells you everything you need to know from start to finish.

3. Have you heard of Mike Black? He is an entrepreneur who challenged himself to get from $0 to $1M in 12 months with just a phone and the clothes on his back. Check out his story here!

4. Interested in the art of valuations? This guide focuses on the art of finding the right listing price for a business - without all the confusing spreadsheets!

THANK YOU

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See you next time!