¢
BIZBITE

Cemetery / Memorial Park

The one business with guaranteed demand

Bottom line

Worth studying, but do not buy without strong local proof.

Cemeteries sell burial plots, headstones, and perpetual care contracts. Pre-need sales (selling plots before death) generate significant upfront cash flow. Perpetual care funds earn investment income. Cemeteries have operated for centuries — the ultimate long-term business.

Acquisition score
Margin · multiple · SBA data
38Fair
Avg revenue
$500K/yr
$200K–$2M range
Profit margin
30%
~$150K SDE
Multiple
3–8×
of SDE
Est. buy price
$450K–$1.2M
startup: $500K–$3M

How It Works

Revenue comes from plot sales, headstone/marker installation, opening/closing fees for burials, and perpetual care contracts. Pre-need sales (selling plots to living customers) provide upfront cash. Many cemeteries also offer cremation niches and columbarium spaces as cremation rates rise.

BizBite verdict

Pass for now

Cemetery / Memorial Park has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

38Fair
medium data confidence · 52/100medium financing fit

Why it may work

  • +Attractive 30% estimated margin profile
  • +SBA dataset shows 3 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet
  • !Premium entry multiple

SBA 7(a) data

Real acquisitions in this category

Change-of-ownership loans · NAICS 812220 · Cemeteries and Crematories

Deals tracked
19
3 in last 24 mo
Median loan
$852K
$421K–$1.5M p25–p75
Implied deal size
$1.0M
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal size distribution

<$150K
0
$150K–500K
5
$500K–1M
6
$1M–2M
5
>$2M
3

Financing profile

Median rate
9.75%
0% fixed · last 24 mo
Median term
192 mo
real-estate heavy
Collateralized
0%
of loans secured
Median jobs
6
supported per deal
Top lenders in this space
IncredibleBank4
Live Oak Banking Company3
BancFirst1
Northwest Bank1
Southern Bank1
Where deals happen
TX5
FL5
PA2
MO2
SC2
AZ1
WA1
KS1

Recent comparable deals

ClosedStateLoanImplied deal
Dec 2024FL$1.5M$1.7M
Oct 2024TX$1.3M$1.5M
Jul 2024WA$500K$588K
Sep 2022FL$265K$312K
Aug 2022MO$2.7M$3.1M
Mar 2022FL$1.9M$2.3M
Nov 2021TX$998K$1.2M
May 2021MO$421K$495K
Mar 2021PA$162K$191K
Mar 2021FL$2.7M$3.1M
Volume rank #266/544Deal-size rank #207/544p90 loan: $2.4MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Deal Calculator

Priced off $150K SDE — can this deal service its own debt?

1.80×
DSCR · Lender-comfortable
Purchase multiple — 5.0× SDE ($750K)
Category range: 3×–8× SDE
Down payment — 10% ($75K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 9.75%
SBA median for this category: 9.8%
Loan term — 16 years
SBA median for this category: 192 months
Purchase price
$750K
5.0× of $150K SDE
Cash to close
$98K
$75K down + ~3% closing
Debt service
$7K/mo
$83K/yr on $675K loan
Cash-on-cash
68%
cash back in ~18 mo
Debt service coverage · what the lender sees
1.80×+$6K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

  • +Demand is literally guaranteed — mortality rate is 100%
  • +Pre-need sales generate cash flow years before service delivery
  • +Perpetual care funds provide investment income in perpetuity
  • +Very high barriers to entry — zoning for new cemeteries is nearly impossible

Cons

  • -Heavy regulation at state and local level
  • -Cremation trend is reducing plot demand in some markets
  • -Large upfront capital requirement for land and development

Best For

Patient, long-term investors comfortable with a unique business model

Operating Costs

Costs include grounds maintenance, staff for burials and sales, regulatory compliance, insurance, and perpetual care fund management. Many cemeteries operate with 5-15 employees.

Where to Buy

BizBuySell

Search for cemetery businesses in the general listings

ICCFA

International Cemetery, Cremation and Funeral Association

Get the full breakdown in your inbox

Weekly boring business breakdowns

One boring business. Real numbers. Every week. Free.

Buy a cemetery / memorial park
via BizBuySell
See listings →