The business typically undertakes c 250 funerals per year and has a 10-11% share of its local market.
Around 25% of funerals are redeemed pre-paid funeral plans. Regulated by the Financial Conduct Authority (FCA), the business is authorised to sell pre-paid funeral plans and the current scheme incorporates around 800 live policies (over 3 years of funerals at the current level of activity), with a ‘death value’ of c £4.2M.
The business operates from a central hub, with additional branches. All of its premises are of high quality, reflecting a comfortable and comforting atmosphere for its clients, supported by a largely new fleet of vehicles. The business focuses on providing an award winning bespoke personal service.
The company employs 11 staff on a mixture of full-time and part-time bases, in addition to the directors, who are not required in the day to day operations but provide overall strategic direction.
The Company is strongly cash generative, generating revenues of £1.1M for the prior year, with an adjusted EBITDA of c. £300k and forecasting revenues of £1.2M for the current year, with an adjusted EBITDA of c. £350k. The business is operated on maintaining the status quo, rather than a growth strategy, which leaves opportunities for the new owners. In addition, the pre-paid funeral scheme is operating at a significant surplus.
The guide price for 100% shares is £2.7M and the business will be sold with a debt free, cash free Balance Sheet and a net asset value of c £340k. The acquisition will suit both buyers in the funeral sector looking to extend their geographic reach and / or incorporate an FCA regulated pre-paid funeral plan element within their business. It will also suit private individuals / small investor groups looking to purchase a robust and strongly profitable business. The directors have other business interests they wish to prioritise and hence the sale but will be flexible over appropriate handover support.
The vendor will provide appropriate handover support and would welcome the opportunity to remain with the business in some capacity, but without the responsibility of ownership.
