Understanding Proforma Financials When Selling a Funeral Home

Understanding Proforma Financials When Selling a Funeral Home

When funeral home owners start thinking about selling their business, they’re often introduced to a document called a “proforma financial statement.” These are forward-looking projections prepared by brokers or consultants to show what the business could earn under new ownership.

At first glance, proformas may seem helpful. But in many cases, they include inflated revenue projections, reduced expenses, and overly optimistic assumptions that do not align with the actual performance of the business.

As someone who has built a successful funeral home over decades of hard work, you naturally want your business to be valued appropriately. But beware: these proformas are often used as a tool to encourage you to sign exclusive listing agreements, locking you into commissions and long-term obligations — even if the business doesn’t sell or if you find the buyer yourself.

Common Risks of Over-Reliance on Proformas

• Overpriced listings that deter serious buyers and don’t meet lender criteria
• Prolonged listing periods with few or no offers
• Exclusive agreements requiring a commission — regardless of who finds the buyer
• Clawback clauses holding you liable for commissions long after termination
• Dual compensation where brokers receive fees from sellers, buyers, and lenders — often reducing your net proceeds and transparency

4BSF Approach: Independent, Confidential, No Pressure

At 4BSF, we are not brokers. We are transaction specialists focused on helping funeral home owners make informed, confident decisions.

We offer:

• Independent business valuations based on actual tax records and market comparables
• Direct connections to buyers and lenders — no inflated pricing or unrealistic projections
• Low-cost, transparent deal structures without exclusive lock-ins or hidden fees

Personalized support through every step of your transition

Thinking of Selling?

Let’s have a confidential, no-obligation conversation about your goals — and how to protect your time, your proceeds, and the legacy you’ve built. Also visit our Sell a Funeral Home page for a complete guide on how 4BSF supports sellers with transparency, discretion, and real results.

Sincerely,
Matt Manske
Founder, 4BSF
📧 matt@4bsf.com | 📞 (913) 343-2357

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