Real Talk: Learn What It’s Really Like to Sell Your Funeral Home

NewBridge recently sat down and had a conversation with Rob Olthof, former owner of Olthof Funeral Home in Elmira, NY.  Olthof, a third generation Funeral Director, operated the business for 25 years.  Olthof, 50, recently decided to sell his 70-year-old family funeral home business to Rollings Funeral Service, Inc.  The NewBridge Group assisted Rob with the process of exploring his options and so we wanted to follow up with his experience since his sale. 

Let’s dive into our 1/1 interview with Rob as he gives us his honest insights into his personal and professional journey during and after this life-changing decision to sell his family business.

Why did you decide to sell?

I decided to sell our 70-year-old family business because I was feeling a loss of direction given the rise of the growing cremation rate. 

How did you begin the process once you decided that you may want to sell?

Well at the point that I decided to consider selling, I contacted several different possible buyers.   There were two large publicly traded buyers as well as a couple of venture capital backed buyers.

So you didn’t initially consider selling to a private funeral operator?

Well honestly, I didn’t know any that I thought I could afford it.   I just assumed that private companies really couldn’t afford to pay as high of a price as other buyers.

How did you first hear about Rollings Funeral Services Inc. and Greg Rollings?

I found out about Greg and Debbie Rollings from another funeral home owner who was looking to transition his own business.

What were your initial concerns when you considered selling to a private business?

For starters, my biggest concern was that they wouldn’t be able to afford the purchase or have access to funds to complete the purchase.    When I called Greg, this was one of the points he made clear from the beginning, that funding wouldn’t be an issue.     

Another concern, which he handled great from the beginning, was assuring me that my company’s information would stay confidential to only those working on making an offer.  In contrast, I was very aware that if I was going to consider selling to someone in my same town, then they’d have my personal information to possibly use against us competitively. 

In general, what have been the pros and cons of having sold?  

I have found that selling my family business has offered a completely new life in the funeral business that I never knew existed.  It has given me the opportunity to broaden my knowledge of the inner workings of a much larger company.  In addition, I now have a team that I can rely on for honest direction. 

Other than money, what criteria were most important to you when selecting the company you sold to?

I chose Rollings Funeral Service Inc. because Greg Rollings is a licensed funeral director. He truly understands the business, our lives, and what it costs to own a funeral home. This meant a lot to me. On the other hand, all other interested parties sent their accountants to meet with us. 

What is your current position in Rollings Funeral Service?

I am currently the Regional Manager for Rollings Funeral Service for New York, Pennsylvania, Maryland and Connecticut.  I help support the individual location managers and really just help out wherever is needed.

What type of changes have taken place in the business since you sold it?   

I would say that not much at all has changed in our business.  Rollings Funeral Service Inc. brought in a new software package for us to use.  They wanted to make certain that we had all the up-to-date technology needed to take us to the next level of service.   And then I’ve noticed a general increase in morale, because we have a larger support system than we had before.  

How have your operations benefitted since selling to Rollings?

Rollings Funeral Service Inc. has been a wonderful backbone to our operations.  They provide support when necessary and give us all the tools we need to provide the best service for our families.  There is a great deal that Rollings does for us, that we would typically have to do on our own, including all the payroll, HR, insurance, budgeting.

I understand that Rollings is “anti-corporate” and does not apply a cookie-cutter approach to every new partnership.  That said, what are some of the operational benefits you have experienced or seen that Rollings can implement?

I think the biggest and most common fear is a drastic change to operations when a new buyer comes to town.  That is not a concern with Greg Rollings.  In fact, Rollings Funeral Service Inc. is proud to be anti-corporate. Every single funeral home operates in their own way.  Their general philosophy is that if it’s not broken, they do not fix it.

We hear that one of the biggest reasons why owners want to sell is to get more free time, less nights and weekends, etc.  Did you personally experience that freedom?

Yes!  I have a completely different life now.  It seems weird to have a life that I can make a plan and actually follow through with it.  I can also go on vacation and truly enjoy it, not having to worry about what is going on back at the business. 

Were there any surprises as a result of the transaction?

No, there were none.  Everything was very seamless and fast.  The transaction closed in just 94 days, and really it was a pretty easy process.   He has a great team of people that help with the transition.

How have you dealt with COVID-19 and the restrictions?    

Every state has dealt with the pandemic differently.  In New York, it has been challenging because there were frequent changes in policies to adhere to.  Our team has had to be very creative and Greg Rollings has embraced every idea with a “Yes!”. 

If a peer who was at retirement age approached you about potentially selling their business, what are the three biggest advantages of selling that you would share?

I would say it is… 1. Freedom.  2. Being proud of who you sold your business to.  3. Seeing your business continue to serve the community that you love. 

If a peer who was around your age and was not looking to retire soon approached you and told you that they were considering selling their business, how would your message be different to them, if at all?

It would not be different at all.  In this day and age with the rise of cremation, a funeral home owner either must greatly expand his or her operations or decide to sell.  It is not hard math. They just need to face it and accept that their funeral home will never be more valuable than it is right now.  I lived through the early 90s in the business when the large companies came in and tried to buy out everyone.  Those days are gone and I don’t see them returning, especially at the dollar amounts they were paying for private businesses. 

If you had to do any of it over again, what would you do differently?  

I would have done it earlier.  Being a part of something larger and having so many people to turn to is huge for me.  I know that every single person I call at Rollings Funeral Service Inc. is a person that stands behind me. 

If you knew someone who was on the fence about selling, what would you tell them?

It’s about selling to the right people.  Rollings Funeral Service Inc. is a place you can trust with your family legacy.  Give Greg a call, he always answers his phone.

NewBridge would like to thank Rob Olthof for taking the time to share with us his very own experience with selling his family business.  We know that this is an important decision and it’s helpful to learn through others who have gone through a similar process.

Since 1997, NewBridge has a proven track record of helping funeral home buyers and sellers alike. As a group, we have assisted in the sale or financing of more than 650 funeral home businesses. Our success has resulted from first understanding our clients’ goals before beginning our work.

Contact us today for a no-obligation, complimentary valuation to see if this option would work for you. You can also call Todd Reich directly at 404-542-9956 to ask questions or learn more.