Public companies downstream Death Care holdings

We finance caskets CLICK HERE and send it directly to the funeral home of your choice. Or go directly to the application HERE.

There was a day when someone that used the fictional Jones Funeral Home in Anytown, USA, knew that it was the Jones family that had the ownership and pride in that business.  They knew if there was anything in their small community that pertained to Death Care business, the Jones family would know about it.

Over the years, like so many other business’, that has changed.  The fictional Jones Funeral Home may be owned by a regional or national consolidator. . . . I’m not saying that is good, bad, or otherwise. . . .it is just the way it is.

It’s interesting, however, that that change of ownership does not just happen in the local funeral homes, but it happens in the national and sometimes global world of Death Care, too.  Just since I’ve been publishing Funeral Director Daily we’ve seen formerly public companies StoneMor, Batesville, InvoCare, Dignity plc, Assurant Preneed, Park Lawn Corporation, and more change ownership. . . . . and those mentioned are only the companies that dealt in the public stock ownership realm.

Those companies, or segments of companies such as Batesville as a segment of Hillenbrand Industries, have all ended up in private company ownership at this time.  That’s been a loss for me because when they were public companies I could look at their quarterly and annual earnings on a somewhat comparative nature with my company and see where my funeral home stood — on such items as revenue per case, preneed sales, or cremations vs. interments.

Going from public company to private company is not so unusual.  Here is an article I found titled, “10 of the most famous public companies that went private”.  You’ll recognize some of the names X (Twitter), Heinz, Burger King, Dell Computer, Hilton, and Panera Bread to name six of them.

It happens the other way too —  Companies “go public” to raise funds to build their companies and they also “go public” when acquired by an existing public company.  For instance, the fictional Jones Funeral Home was a “private” company until they get acquired by a “public” company such as Service Corporation International or Carriage Services.  They then become part of a “public” company — where stock ownership can be bought and sold on the open market.

Here’s a couple of Death Care companies that, to my knowledge, are now parts of public companies:

Global Atlantic Preneed —  Global Atlantic Preneed is a segment company of KKR & Company (KKR).  According to Seeking Alpha KKR is described as such:

“KKR & Co. Inc. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, lower middle market, and middle market investments. . . . . The firm typically holds its investment for a period of five to seven years and more and exits through initial public offerings, secondary offerings, and sales to strategic buyers.”

Interestingly enough, Global Atlantic Preneed has its origins in the Forethought Funeral Insurance brand.  It was purchased by Global Atlantic in 2014 and had originally started as part of Hillenbrand Industries, also the original parent company of Baesville.

Related Article — “KKR completes acquisition of remaining 37% of Global Atlantic”.  January 2, 2024

Wilbert, Inc. — Wilbert, Inc. is a segment company of Warren Buffet led Berkshire Hathaway (BRK.A. BRK.B).  According to Seeking Alpha Berkshire Hathaway is described as such:

“Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; operates railroad systems in North America; generates, transmits. . . . .Berkshire Hathaway Inc. was incorporated in 1998 and is headquartered in Omaha, Nebraska.”

Related Articles —

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  Over my business history I’ve been involved as an owner or board member of acquisitions and divestitures in the funeral business, health care, banking, and insurance businesses.  What I’ve come to find is that it is not necessarily who owns the business as to how the business succeeds, but the leadership, culture, and long-term strategies that come with that ownership that can make a business thrive or fail.

Planning, and especially long-term planning that can be re-directed when needed, is essential.  Buying a business for buying’s sake or selling for selling’s sake makes little sense unless you can show how the transaction will play into the best interests of the long-term plans of the organization, or in the case of family funeral homes, the family.

More news from the world of Death Care:

Enter your e-mail below to join the 3,120 others who receive Funeral Director Daily articles daily:

“A servant’s attitude guided by Christ leads to a significant life”