A current Old National client who owned 18 funeral homes, cemeteries and mausoleums throughout the Midwest had the opportunity to expand by purchasing a Texas-based operator with a funeral home, mausoleum, cemetery and excess land. This land potentially contained an environmental issue.
The seller was a second-generation family of four siblings who were not in agreement on the business. Existing financial controls and information on pre-sold plots and contingent liabilities was not readily available. In addition, no seller financing was proposed to assist in closing the deal.
When the purchase agreement was executed, our client had only two weeks to close.Old National provided two term loans to finance the acquisition. The team at Old National assisted in negotiation of seller holdbacks to cover potential liability with any pre-sold plots or services and work through the environmental issue. During due diligence, a full appraisal was ordered and obtained to assist in determining an appropriate purchase price and level of financing. The transaction closed on time.