What should you check before buying a monument and headstone company?
Before buying a monument and headstone company, check the granite inventory and supplier arrangements, the engraving and sandblasting equipment, the design files and lettering templates, the installation crew and equipment, relationships with cemeteries and funeral homes, and the open-order book. Take licensing questions to your lawyer.
A monument company sells something families keep for generations, so a mistake in lettering or a delay in setting a stone stays visible for a long time. When you consider buying one, you are checking the stone, the shop, the people who install it and the book of orders still to be filled. The checks below follow that path from supplier to cemetery.
Stone, suppliers and stock
Ask what granite is on hand, what is on order, and who owns it. Ask how the company buys stone, whether supplier terms are written, and whether a supplier would continue to deal with a new owner. Check that stock in the yard is the same as stock in the books. A walk through the yard with the seller, and a list of what you saw, is a simple start.
Equipment and design files
Engraving and sandblasting equipment, saws, polishing tools and lifting gear all need to be in working order. Ask for service records and note what is leased. Then ask about the design files: lettering templates, artwork and past proofs. Do not overlook them. Confirm that they are backed up and that they come with the business. The equipment questions for a print shop follow a similar method.
Installation crew and cemetery relationships
Setting a stone takes a trained crew, the right vehicle and equipment, and good timing with the cemetery. Ask who does the installs, how long they have worked there, and whether any of them plan to leave. Ask which cemeteries and funeral homes send regular work and how those relationships are managed. If they depend on one person, speak with the seller about how that will change after the sale.
The order book
Ask for a list of every open order with its stage, the customer, and what has been paid. See the page on what happens to unfinished headstone orders when a monument company is sold, and do not assume it will resolve itself. Ask your lawyer whether any licensing applies where the business operates.
Related reading
14 pages on the same subject, grouped by topic.
Buying
- GuideHow to buy a funeral home in Ontario: licences, ownership rules and what transfers
- GuideHow to buy a funeral home in British Columbia: licences, ownership rules and what transfers
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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