Buying a memorial plan company to expand reach and capacity

A memorial plan company is being sold to this quarters because the owner is old and simply wants to have nothing to do with business anymore

We are blessed that this is offered to us to buy;  It could be game changing move and bring us up to the next level.

Some pros why we should be doing this:

1. The price is a low 7 numbers.  A new memorial plan company would require 9 numbers as paid up capital

2. This would be a vehicle to sell our packages.

3. We could piggyback on our existing memorial park, and use our existing sales force to sell the plans

Difficulties are not with the external, nor with the business but with the stuff between the ears.

Helping other memorial parks help themselves

In my analysis of business that it is about to go under, my analysis shows that the problem is not with the external, or with the business model.  But with the attitude of the owner on the business, life and herself.

The market area is very progressive. The town is a gateway for major cities in the north. there are two branches of a major supermarket chain because of huge sales probably.

We tried to infuse money, they were not able to sell substantially (most of sales were x deals), they had huge financial deficits.  We tried to bring in a marketing group but the achievement of the marketing group( who is great for the heir past projects) has been miniscule and they told me:

These are the complaints of marketing group:

Negotiation vs a foreclosure proceeding

Memorialization continues;  death and taxes are sure things thing life.

One of the memorial parks brought to us for rescue has huge debt to a cooperative bank.  In the last 7 years, the original principal of 7 numbers has ballooned to 8 numbers.  We went to the lender 3 years ago requesting for some relief. However, the owner for one reason or another did not follow up nor did any action to avert the foreclosure.

So we tried to look for remedies:

1. To help reduce the amount from 8 numbers fo only 7 numbers.  However the new officer, wanting to look good to the boss, can only reduce the penalties by P2 million.  This was generous, however, considering the lackluster performance of the park, the huge amount looks formidable still.

2.  To let the foreclosure continue but challenge the bank's lack of authority over the franchise, or that the bank will have to put a memorial park company to manage the park.  Or use the legalese that the rights of memorial park owners is superior to the foreclosure.