Right now is a great time to buy a funeral home or cemetery business, and it’s also a great seller’s market if you are considering an exit strategy. The stars are aligned for both buyers and sellers, and Jake Johnson (President and CEO of the Johnson Consulting Group) talks about why the odds favor both sides of the table in the latest episode of his “M&A Minute” video series.
Why You Should Buy Now
There are a multitude of decisions to make when buying a business, and finding the right loan/ financing option can sometimes make or break the deal. One of the factors that make this a buyer’s market are the favorable lending programs currently offered by the Small Business Administration (SBA). The SBA helps small business owners get guaranteed loans which can be used for most business purposes and feature unique benefits such as competitive rates, lower down payments and flexible overhead requirements.
The agency recently updated their policies to provide more benefits for borrowers and lenders. Funeral home and cemetery professionals looking to grow or expand their business should take advantage of the SBA’s generous terms, which include reduced or no fees as well as government subsidy payments up to three months’ worth of principal and interest for new loans. It’s important to move quickly however, as some of these loan provisions are temporary and will expire on September 30, 2021. “These programs won’t last forever so if you pass them up, you’re passing up free money to grow your business,” says Johnson.
Right Now Money is Cheap
Interest rates continue to be low, which is a great incentive for funeral home and cemetery owners ready to invest in their business. Since borrowing is cheap right now “You can afford more business with a lower payment than in high interest years,” says Johnson. This is the time to make improvements, buy equipment, expand into new locations, or even sell your business. Low rates often stimulate buyer demand, which can lead to more and better offers for business owners ready to sell.
Whether you’re a seller or a buyer, it never hurts to work with a business broker to achieve your goals. The experts at Johnson Consulting Group assist with buying, selling and creating successful exit planning strategies for buyers and sellers. To learn more about our funeral home and cemetery broker services, please contact us today.
Jake Johnson and the Johnson Consulting team created the M&A Minute to help business owners through the process of buying or selling a business. The M&A Minute utilizes Jake and the JCG team’s knowledge to give advice that helps individuals feel confident and at ease when going through one of the most important times of their lives, selling or purchasing their most valuable asset. The M&A Minute is released every other Thursday. You can watch episode 9 now. Follow us on Facebook, LinkedIn, and Twitter to get M&A Minute updates.