What should I check before buying a funeral home?
Before buying a funeral home, check the call-volume trend and where calls come from, the condition of the building, chapel, prep room and vehicles, how long staff have stayed and who holds the relationships, the home’s reputation, and the state of its prepaid-contract records.
A funeral home depends on a community’s trust, so a good review looks at people and reputation as well as the books. The checks below are practical ones that apply to most homes. Confirm licensing and ownership questions with your lawyer early.
Call volume and where calls come from
Ask for several years of calls, not just the latest. Then ask where they come from: hospitals, care homes, churches, cultural groups and families who return. A home that relies on one referral source is more exposed than one with many. Ask what would happen to those relationships if the owner left.
Building, chapel, prep room and fleet
Walk through the premises with a qualified inspector. Look at the chapel, the preparation room, the storage areas, the parking and accessibility. Ask how old the vehicles are and what repairs are coming. Check whether the building is part of the sale or leased, and read any lease closely before you commit.
Staff, reputation and relationships
Find out how long each staff member has stayed, who is licensed and who families ask for by name. Read online reviews and ask local clergy and care-home staff, discreetly and with the seller’s permission. Ask the seller to introduce you; a calm handover can protect the home’s standing.
Prepaid-contract records
- A list of every prepaid contract, with dates and what was promised.
- Where each family’s money is held and who can access it.
- Records showing which services have been carried out.
- Anything your lawyer wants to confirm before closing.
For the financial side, see how to verify a seller’s financials.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
- Expert answerCan a professional buy a practice before being licensed in that province?
- GuideHow to buy a funeral home in Ontario: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in Alberta: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in Quebec: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in British Columbia: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in New Brunswick: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in Nova Scotia: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in Prince Edward Island: licences, ownership rules and what transfers
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Bereavement Authority of OntarioRegulatorLicensing
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 04Government of Newfoundland and Labrador (Government Services)GovernmentPre-Paid Funeral Service Sellers
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.