Funeral home M&A definitions

Funeral home adjusted EBITDA defined: the bridge from SDE, the manager-wage and rent adjustments, how lenders test it, and which adjustments buyers reject.

A funeral home asset purchase agreement sets what the buyer gets, which liabilities and preneed contracts it assumes, how price adjusts, and who pays later.

Funeral home average revenue per call explained: the formula, what to exclude, how SCI and Carriage measure it, why mix matters, and the errors that distort it.

A call volume earnout pays part of a funeral home's price only if future calls hit agreed targets. How the formula works, how to define a call, and SBA limits.

Funeral home call volume defined: what counts as a retail call, how to verify the count against case files and statements, and how buyers and lenders use it.

A combination funeral home cemetery operation shares one owner and often one site. What it is, which states restrict it, how buyers value it, and key mistakes.

A funeral home consolidator buys independent firms and runs them as a network. Who the consolidators are in 2026, how to verify one, and why they can pay more.

Cremation rate definition for funeral home buyers and sellers: how it is calculated, why NFDA and CANA differ, how fast it is rising, and how it changes value.

Crematory license requirements in four layers: facility license, operator credential, air permit, and per-case permits. Who may own one and what a sale changes.

What is direct cremation? The FTC Funeral Rule definition, the required price list disclosures, how it differs from other cremations, and what it does to value.

The FTC Funeral Rule defined: what 16 CFR Part 453 requires, who it covers, where rulemaking stands in November 2026, and how it shapes a funeral home sale.

Funeral director in charge definition: the licensee legally responsible for a funeral home, the titles states use, how buyers verify it, and how it moves price.

A funeral establishment license lets one location operate. What it requires, why a sale or a stock change can cancel it, how buyers verify it, and pitfalls.

A funeral home non-compete explained: who it binds, how radius and term are set from call data, why state law governs after the FTC rule was vacated, and taxes.

What a funeral home general price list must include under the FTC Funeral Rule, how buyers test it in a sale, and why a price increase can widen a preneed gap.

Guaranteed price preneed contract explained: who carries price risk, who keeps excess funds, how states treat the guarantee, and what a buyer inherits.

Insurance funded preneed explained for funeral home sales: how assigned policies back contracts, how commissions hit earnings, and what moves to a buyer.

The legacy terms funeral home sale families ask for: name, staff, family roles, and community promises, what each one costs a buyer, and where to write it.

A funeral home letter of intent sets price, structure, preneed treatment, financing, and exclusivity. Learn what binds, what does not, and the SBA limits.

Perpetual care fund cemetery definition: what the trust holds, required deposits by state, how income is used, how buyers audit it, and mistakes owners make.

Preneed backlog definition for funeral home sales: what it includes, how to forecast when contracts become calls, and why it exceeds the money behind it.

Preneed contract definition for funeral home owners and buyers: the clauses that set its value, the federal and state rules, and what moves to a new owner.

Preneed trust shortfall defined: the five causes that open a gap between trust funds and today's prices, how to calculate it, and how buyers and lenders react.

Preneed trust requirement explained: how much each state makes a funeral home deposit, who may act as trustee, and how a buyer checks compliance before closing.

A funeral home quality of earnings report tests whether earnings are real, recurring, and backed by cash: what it covers, when SBA requires it, who orders it.

Revocable vs irrevocable preneed explained for funeral home buyers and sellers: refund rights, Medicaid and SSI rules, portability after a sale, backlog risk.

Funeral home SDE explained: what seller's discretionary earnings include, the one-owner rule, add-backs buyers reject, how lenders test it, and a worked recast.

A selling funeral director consulting agreement sets the seller's role, pay, and term after closing. What it is, how SBA rules cap it, and how to test the pay.

What a special purpose property appraisal funeral home lenders order must cover: value premise, appraiser experience, SBA 504 contributions, and the as-is test.

The statement of funeral goods and services selected, defined: what the FTC requires on it, when families must get it, and how buyers use it to test revenue.