What Is My Funeral Home Worth?

Funeral homes command some of the highest multiples among service businesses. The combination of essential demand, community trust built over decades, pre-need contract portfolios, and often significant real estate creates substantial business value.

Typical Valuation Ranges

Most funeral homes sell for 4x to 6x SDE or 5x to 8x EBITDA for larger operations. National consolidators (Service Corporation International, Foundation Partners) and PE-backed platforms pay premium multiples for established funeral homes.

Factors that push toward the higher end:

• Large pre-need contract portfolio
• High annual call volume (200+ calls/year)
• Owned real estate (chapel, preparation room, parking)
• Strong community reputation spanning decades
• On-site crematory
• Revenue above $1M with stable volume
• Management team (licensed funeral directors beyond the owner)

Factors that push toward the lower end:

• Owner is the sole licensed funeral director
• Low call volume (under 100 calls/year)
• No pre-need contracts
• Leased facility
• Aging building needing renovation
• Declining market share

Why Funeral Homes Are Highly Valued

Guaranteed demand. The death rate is constant and predictable. Demand doesn't fluctuate with the economy.

Community loyalty. Families return to the same funeral home for generations. This loyalty takes decades to build and is extremely durable.

Pre-need revenue. Pre-need contracts (pre-paid funeral arrangements) represent locked-in future revenue. A portfolio of 500+ pre-need contracts is an enormously valuable asset.

Barriers to entry. Licensing requirements, facility standards, community trust, and the sensitivity of the service create high barriers for new entrants.

Key Metrics Buyers Evaluate

Annual call volume: The primary volume metric. Buyers pay per-call premiums — often $2,000–$5,000+ per annual call depending on market.

Average revenue per call: Full-service funerals average $8,000–$12,000+. Cremation-only averages $2,000–$4,000. A healthy mix matters.

Pre-need portfolio: Total contracts, trust fund values, and fulfillment rates. This is future revenue already sold.

Market share: Your share of total deaths in the service area, typically measured through county death records.

How to Increase Your Funeral Home's Value

1. Build your pre-need program. Active pre-need sales create a growing portfolio of future revenue.
2. Add cremation services. An on-site crematory adds margin and captures a growing segment of the market.
3. Hire licensed directors. Reduce owner dependence by employing additional funeral directors who build their own family relationships.
4. Maintain your facility. Updated chapels, arrangement rooms, and preparation facilities signal investment and respect for the community.
5. Document your operations. SOPs, vendor relationships, and community contacts should be transferable.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.