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BIZBITE

Crematory Equipment Service

A grim but essential maintenance niche with zero room for downtime

Bottom line

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

Crematory equipment service companies maintain retorts, refractory linings, burners, controls, pollution-control equipment, coolers, lifts, and processing equipment for funeral homes, crematories, pet cremation operators, and municipalities. It is a tiny, uncomfortable niche with real urgency: when a cremator fails, the operator has a capacity, compliance, and family-service problem immediately.

Acquisition score
Margin · multiple · SBA data
54Strong
Avg revenue
$700K/yr
$180K–$3M range
Profit margin
25%
~$175K SDE
Multiple
2–5.5×
of SDE
Est. buy price
$350K–$963K
startup: $75K–$400K

How It Works

Technicians inspect retorts, repair refractory, tune burners, troubleshoot controls, service loaders and processors, replace parts, document compliance issues, and respond to emergency outages. Revenue comes from preventive maintenance contracts, refractory rebuilds, emergency service, parts markup, installations, and equipment upgrades.

BizBite verdict

Watch / verify

Crematory Equipment Service 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.

54Strong
low data confidence · 40/100medium financing fit

Why it may work

  • No strong positives yet. More verified data needed.

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No SBA category enrichment yet
  • !No category operating model yet
  • !Low data confidence

Deal Calculator

Priced off $175K SDE — can this deal service its own debt?

1.95×
DSCR · Lender-comfortable
Purchase multiple — 3.5× SDE ($615K)
Category range: 2×–5.5× SDE
Down payment — 10% ($62K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 10.50%
Typical SBA 7(a) range: 9.5–12% (prime-based)
Loan term — 10 years
Standard SBA 7(a): 10 years for business acquisition
Purchase price
$615K
3.5× of $175K SDE
Cash to close
$80K
$62K down + ~3% closing
Debt service
$7K/mo
$90K/yr on $554K loan
Cash-on-cash
107%
cash back in ~12 mo
Debt service coverage · what the lender sees
1.95×+$7K/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

  • +Mission-critical equipment creates urgent demand
  • +Specialized knowledge and discomfort with the niche reduce competition
  • +Preventive maintenance and refractory work recur
  • +Can serve both human and pet cremation markets

Cons

  • -Technically demanding and emotionally sensitive environment
  • -Customer universe is small in each region
  • -Travel, safety, and compliance requirements can be heavy

Best For

Industrial furnace, refractory, burner, funeral-service, or specialty mechanical buyers who can handle a high-trust niche

Operating Costs

Costs include service vehicles, refractory materials, burner parts, controls inventory, technicians, insurance, travel, safety gear, and manufacturer training. Emergency response and rebuild capability drive pricing power.

Where to Buy

American Mortuary Coolers - Cremation Costs

Industry reference with cremation economics and equipment cost context

FinModelsLab - Crematorium Owner Income

Market reference discussing crematorium margins and operating economics

BizBuySell - Funeral Businesses

Marketplace for funeral, cremation, and death-care acquisition comps

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Buy a crematory equipment service
via American Mortuary Coolers - Cremation Costs
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