THE SHORT ANSWER
Value a funeral or cremation operation using supported continuing earnings, actual authority, pre-need obligations and permanent qualified costs. Separate earned completed services from protected future-service funds, case counts and property value. National reported funeral-home/mortuary sales provide limited historical context; they do not establish a standalone cremation price, corporate EBITDA range, automatic goodwill premium or unrestricted pre-need cash.
Use reported funeral sales within their scope
BizBuySell reports national 2021–2025 sold owner-discretionary earnings multiples of 3.06 lower quartile, 4.01 median and 5.06 upper quartile.
(BizBuySell: reported funeral-home and mortuary sales)The group covers independent small funeral homes and mortuaries. It is not an isolated standalone cremation sample, corporate-platform EBITDA, asking prices, current local recommendation or individual property appraisal. Confirm actual comparable earnings, asset/property and pre-need scope; broad figures do not establish consistent inclusion for this company.
SBA describes income, market and asset valuation approaches.
(SBA: closing or selling a business)Define actual operation, permanent owner duties and included assets before comparing completed deals. Have qualified property advisers assess any real estate separately with consistent rent and price assumptions. Reputation and pre-need backlog require evidence; no universal goodwill percentage or case-count price is substantiated here.
Test a defined completed-service group
This hypothetical group assumes collected completed company service fees after credits. Protected pre-need money and third-party/cash-advance amounts are excluded. Three specified costs are distinct and not already deducted; actual accounting presentation requires qualified review.
| Hypothetical completed-service group | Assumed amount | Boundary |
|---|---|---|
| Collected completed company fees after credits | 30,000 dollars | Defined earned group only |
| Merchandise/products | 6,000 dollars | Distinct stated cost |
| Direct service labor | 8,000 dollars | Separate stated amount |
| Third-party service providers | 4,000 dollars | Not already deducted |
| After specified costs | 30,000 − 6,000 − 8,000 − 4,000 = 12,000 dollars | Before other operating costs |
The 12,000-dollar remainder follows 18,000 dollars of specified costs. Permanent supervision/management, premises, equipment, insurance, administration, other services, financing and taxes are excluded. It is not SDE, annual profit, an industry margin, company/property value or a client result.
Reconcile pre-need rights and full continuing costs
Reconcile actual contracts, promised goods/services, funding provider, trust/insurance balances, control, ownership, reported records and cancellation/refund/transfer duties with counsel, the accountant and responsible parties. A future-service promise and its funding are separate from achieved company fees and unrestricted cash. Test actual underfunding or necessary future costs before treating a book as a profitable asset.
Illinois PLACE’s November 2025 guidance addresses pre-need/crematory licensing and consumer-fund accounting.
(Illinois Comptroller: PLACE licensee responsibilities (November 2025))Use this dated state example for direct qualified authority confirmation; no actual fund release or nationwide licensing rule is determined here. Use the earnings reconciliation and the coverage worksheet for actual permanent qualified arrangement/direction, preparation, transport, family support, records/funds administration and management costs. Required work is separate from a blanket owner add-back.
Keep authority, assets and funded duties in scope
The FTC Funeral Rule summary identifies pricing/disclosure and certain service-authorization responsibilities.
(FTC: Funeral Industry Practices Rule summary)Have counsel and responsible professionals assess actual activities, qualified people, establishment/professional authority, price records, findings, premises and equipment requirements. A license label or seller assurance is separate from a complete review of the proposed operation.
Review actual premises, equipment, supplier, third-party service, brand and records rights through the consent register. Allocate pending services, pre-need commitments, protected balances, refunds, claims, bills and records custody through the delivery guide. Compare supported permanent earnings, actual included assets, required investment and funded duties. Avoid adding property, equipment or pre-need amounts twice in inconsistent price bridges.
Owner questions
Which funeral-home multiples are supported here?
Only the stated national 2021–2025 reported sold owner-discretionary funeral-home/mortuary sample; actual matched rights, earnings and included assets still require review.
Is the 12,000-dollar example annual profit?
It is the balance after three assumed direct costs, before permanent management, premises and other expenses.
Does pre-need backlog guarantee goodwill value?
Reconcile actual funding, ownership, promised services, costs and transfer conditions; no universal goodwill percentage is established.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- BizBuySell: reported funeral-home and mortuary sales
National 2021–2025 reported sold owner-discretionary earnings multiples: lower quartile 3.06, median 4.01 and upper quartile 5.06. The sample covers independent small funeral homes and mortuaries. It does not establish a standalone cremation price, corporate EBITDA range, asking price, property appraisal or current local recommendation. Matched earnings and included property, assets and pre-need obligations still require verification.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
- Illinois Comptroller: PLACE licensee responsibilities (November 2025)
The November 2025 licensee-responsibilities overview describes Illinois pre-need and crematory licensing, consumer-fund accounting, ownership-change notice and pre-sale audit/new-license conditions. This dated Illinois example requires direct authority and counsel confirmation for the proposed transaction. It does not determine nationwide transfer requirements, permitted fund releases or actual approval.
- FTC: Funeral Industry Practices Rule summary
Summary of itemized pricing, disclosure and certain service-authorization responsibilities. Used to identify topics for qualified compliance review. This summary does not establish complete federal, state or local requirements or verify an individual company's compliance.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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