The Wall Street Journal in this recent article (you may find a paywall here) estimates that over the past 5 years Americans have gained a total of $63 trillion in personal wealth.  And, this article from Yahoo Finance states “. . . the top 20% — the high-earning American households — are thriving because they have seen immense gains in their stock portfolios and home values in recent years.”

Two results of that personal wealth gain are that Americans are consuming at record levels and these same Americans are continuing to look for more investment opportunities.  Part of those investments are going into public stocks and bonds, but I’m guessing that more and more investors, with asset qualifications, are putting money into private equity in growing sums as well.  As you can see from the chart below, as good as the public markets have been for asset growth, private equity returns have left them in the dust.

Private Equity returns vs. other returns.

All that money and all of those potential deals leads me to seeing a sign of caution.  I’ve always tried to do everything on a level keel.  Too much of one thing has never been good for me — as much as I like to golf, three days in a week is enough.  Same with a vacation — it’s fun and relaxing, but I always want to get back to work.

Tom Anderson
Funeral Director Daily

So, that brings me to my thought process —  with all the money being thrown at businesses, including funeral homes, by private equity, when will the good deals end and somebody in their quest for “growth” make the wrong decision?  I don’t know when it will happen and who it will happen to, but at some point the quest for “growth” will lead to bad decisions by somebody.

It just happened in Minnesota with a home remodeling company known as Minnesota Rusco.  You can read an article from the Minnesota Tribune here that lets the reader know that Minnesota Rusco, a Minnesota staple since 1955, was acquired by a private equity firm that was “rolling-up” home remodeling firms across the country and now is looking into bankruptcy.  Somebody either didn’t know the business that well or know the value of the “local-aspect” of these acquired businesses and it looks like the investment will be lost . . . . and the employees of Minnesota Rusco will probably be on the unemployment line.

I recently came across this article titled “There’s a lot of money in Death”:  Funeral consolidation hits Western Mass”.  The article goes on to illustrate that even in some smaller funeral homes and roll-ups involving them, that private equity is involved.  Here’s the website of a private equity firm which lists Milestone Funeral Partners as one of their investments.

It’s no secret that a large number of family funeral homes will be on the market in the next few years.  And, many of them will have the volume and be in a location that will be highly desireable for the national and regional companies to compete for.  If you are one of these owners planning to sell, make sure you know your business value and make sure that you know your buyer.

Because . . . .  I don’t think the good times will last forever and someone will get hurt when the dominoes fall.

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There is a lot happening in the Death Care world. . . especially when it comes to Death Care businesses changing hands.  We recently learned that Funeral Partners, one of  Great Britain’s largest Death Care providers with approximately 280 locations across the country may be up for sale.  And, it may be a prominent private equity company, who once had a holding in Death Care that may be interested.

This article from Sky News indicates that Funeral Partners “is in detailed talks” with private equity company Duke Street and indicates that a sale price could be “worth close to US$ 267 million”.

The article points out that Funeral Partners does close to 20,000 cases annually and that Duke Street once was an owner of Laurel Funerals.

Here is the website for Duke Street.

Funeral Director Daily take:  It is interesting to note that private equity firm Montagu is the current owner of Funeral Partners.  Here is their website with information on their Funeral Partners holding which they apparently have owned since 2016.

It is interesting to realize that what I believe are the four largest Death Care operators in Great Britain are either part of a corporate conglomerate with holdings outside of Death Care or owned by private equity companies.

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I learned through an article from Sky News and in this article from KillBait that Epiris, the private equity firm that acquired London area-based Direct Cremation provider Pure Cremation just over two years ago, is beginning a process to sell the company.

Pure Cremation, arguably the most financially successful start-up in Death Care business history started in 2015 by husband/wife founders Bryan and Catherine Powell.  The timing was evidently perfect for the business which serviced the cremations of Death Care clientele who preferred “simple services with no mourners present”.

That type of service, now christened “Direct Cremation” has grown exponentially since that time in Great Britain, somewhat driven by a combination of price, simplicity, and a decline in religious funeral traditions.

The Powells were quick to learn of the value of Preneed and Pre-arrangements for Pure Cremation.  They employed an aggressive marketing campaign for Preneed with an advertising budget stressing the Pure Cremation “No fuss” cremation options.  According to this 2022 article from Sky News, they sold over 65,000 preneed policies in 2021.   In my opinion, greatly increasing the value of the company.

While no purchase price was, to my knowledge, ever reported when private equity company Epiris purchased Pure Cremation in July 2023, Sky News articles estimated that the company was worth “up to US$ 533 million” at the time.

The above linked KillBait article suggests “Although the current owners (Epiris) are targeting a sale worth upwards of £500 million (US$ 667 million), estimates suggest the business could fetch as much as £700 million (US$932 million) based on its profitability.

Here is the July 31, 2023, press release from Epiris announcing that they had purchased Pure Cremation.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  From my point of view “Growth Companies” are companies that increase revenue and value greatly in a short period of time.  They do so, in many cases, because they have invented new “widgets” that consumers prefer over other options.  For instance “Vizio” creates “smart TV’s” that consumers now prefer over old analog television sets.  The rapid growth of Vizio, which is owned by WalMart, certainly would qualify the company, in my book, as a “Growth Company”.

As an aside here. . . .just think of the opportunities for WalMart to build relationships with those free (advertiser supported) content streaming companies such as Tubi, Pluto, and others.  WalMart can probably make agreements to advertise their products on those streaming services in return for the opportunity for those services to be “imbedded” in the Vizio product.  As long as that Vizio smart TV is in the family room WalMart can probably arrange to have low-cost access to advertising and the opportunity to customize (through AI) those ads to the content a viewer watches. No wonder they sell those TVs so inexpensively — they are not only viewing screens but advertising mechanisms set up right in your television-watching room for WalMart.

Back to the article, compare that thought process of a “Growth Company” with funeral home public companies such as Service Corporation International and Carriage Services. . . . who I look at as mature companies whose operations and finances, in my opinion, operate more like utility companies.  That is, they are “Slow-growth”, generally through acquisitions, funded by debt rather than high-growth cash-flow, without the fast-growing “new widget” or idea that could propel them into “Growth companies”.

In my opinion, Pure Cremation is somewhat different and exhibits itself as more of a “Growth Company” that can fetch a higher valuation for its company because of the long-range, hypothetical growth potential based on the “new widget” of Direct Cremation coupled with aggressive Preneed marketing and sales.

Again, in my opinion, there is nothing wrong with “slow, methodical growth” of a business.  However, businesses need to know what they are.  Later in this article is a chart that I made of four public Death Care stocks along with a couple of “new widget” growth companies.  Again, in my opinion, “Growth Companies” have a characteristic of “higher potential gains accompanied by more financial risk” and companies that operate in a field such as traditional Death Care and have “Slow-Growth” characteristics of “slower growth and less financial risk”.

The chart below is representative of that phenomena.  It shows the annual revenue of the companies that comprise the Funeral Director Daily Death Care Index (DCI) and two other “new widget” public growth companies.  It also shows the value of those companies as indicated by Market Capitalization (Defined as the Stock price x Number of Outstanding shares of stock).  (Note:  All values come from Seeking Alpha data as of October 9, 2025.)

Again, at least from my perspective, it is very easy to see that the Death Care companies do not have a high valuation in relation to the revenues that they bring in —  more than likely because of their “slow-growth” perception to investors.  I see that is where Pure Cremation differs from them in that they have the growth expectation of the consumer’s increased use of “Direct Cremation” raising their value.

Market Capitalization of Death Care Companies and “True Growth” Companies

At any rate, it will be interesting to see who might be the purchaser of Pure Cremation.  It very well could be a public company that wants to add a perceived “high growth” company to its portfolio.

Disclosure:  The author of this article for Funeral Director Daily is a shareholder of Service Corporation International, Carriage Services, Security National Financial Corporation, ATS Spacemobile, and Applied Digital Corporation.

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In the last couple of weeks I’ve noticed articles that truly point to Death Care as being at a nexus, or intersection, of technology and tradition.  Today’s Funeral Director Daily article brings you information and links to articles that truly show that Death Care is changing.

There is one article that shows evolution of a company to be able to meet the needs of today’s consumer.  It’s an article from a company with its roots in the casket business that has changed over the years to become what they term “The Cremation Solutions Leader”.

There is also an article that shows how some investors see enormous potential in the technology of Death Care and how the business can be coupled with health care, grief, and insurance to bring big changes to how consumers might interact with those business silos with greater ease and savings.

Finally, we bring you an article where an ethnic group is partnering with their federal government to keep funerals traditional for them in what indicates a growing sense of cultural niche services in Death Care.  Cultural options, much in line with the old “Catholic vs. Protestant” funeral homes of the past, is something that may be making a comeback on the horizon.  I can also see opportunties and envision certain Death Care companies making “compacts or agreements” with these groups to operate, or manage, such facilities as was done early on in the gaming world and is being done today as senior care centers of certain sizes look for contracted management outside of their walls to reduce costs.

It’s probably a good point to note that “change” is difficult for many, however the thought process of not looking at what North American consumers seem to be wanting in future Death Care may be detrimental to your business.  These business groups seem to have made decisions, and investments, based on a future of technology, cremation, and tradition. . . . and all, based on their investments, believe that there is a market for them to succeed in today’s Death Care business environment.

Folowing are the three articles mentioned above that we have linked for your convenience:

Acquisition —  Starmark Cremation products acquires Chateau Urns.  

Additional Starmark information — Starmark website

Equity Funding —  Exclusive:  Empathy raises $72 million Series C to tackle the agonizing logistics of death.  Yahoo Finance

Additional Empathy information —  Empathy announces $72 million Series C and unveils Empathy Alliance.  BusinessWire

Additional Empathy information —  Empathy website

New Funeral Homes —  Peepeekisis Cree Nation breaks ground for new funeral home.  Government of Canada news release

Additional Peepeekisis Cree Nation information — Peepeekisis First Nation plans to open funeral home that meets cultural needs.  CBC Canada

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The middle of the month has crept up on us again. . . and in Minnesota we are finally getting around to golf season.  On about the 15th of each month Funeral Director Daily highlights our top read articles of the past thirty days and we have some great ones for you. . ..

. . . . these articles cover trends, transformations, private equity, and consumer choices and by reading the articles you will be gaining valuable knowledge that might pay off for you own funeral home.  With no further introduction here are the Top 5 read articles on Funeral Director Daily since April 15.

1. SCI’s “Non-funeral home” revenue is growing fast. . . .  What can we learn?
2. The transformation of Batesville
3. The Segmented Purchase Consumer:  Are funeral homes ready?
4. Private Equity makes investment in Alkaline Hydrolysis
5. The Cremation Aftermarket:  Here’s a great idea to spur interest and sales.  

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We didn’t quite make it through the week without being able to give you another article which again shows a “bullishness” in the greater Death Care profession and industry.  As I’ve noticed several times recently, at the same time that many Death Care retail operators are “skittish” about the future of their business it seems that the more global professional money managers who direct the investments of private investors are continuing to be bullish in the profession. . . if their investments in Death Care are any indication.

Just this week we received this press release which lets us know that Serent Capital has made an investment in Death Care company Plotbox.  Acording to the press release, “PlotBox is the innovative cloud-based deathcare management solution that helps cemeteries, crematories and funeral homes to excel. The intuitive, easy-to-use platform seamlessly places all essential deathcare management functions into one place. This enables customers to serve better, save time, increase revenue, reduce risk – and sustain long-term growth. The 120-strong company is headquartered in Northern Ireland, with on-the-ground teams in the United States and Australia”.

Sean McAllister, CEO of PlotBox had this to say in his remarks that appeared in the press release, ” . . . We wanted a partner whose values aligned with our own, helping to support our mission to help take away some of the pain in dealing with death for families and those that serve them. We’re focused on bettering the industry by raising standards within the profession and this partnership will help us to realize that.”

Lance Fenton, a Partner at Serent Capital had this to say in prepared remarks, “PlotBox has established itself as the premier platform in the deathcare market, offering a comprehensive and highly differentiated product.  We are thrilled to support their vision and help drive the company’s growth across the entirety of the deathcare industry.”

Here is the Serent Capital website that includes their press release.

Here is the PlotBox website that includes their press release.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  It was somewhat tongue-in-cheek that I mentioned we could not get through the week without another investment in Death Care by private equity. That seems to be happening more and more bringing big business into what for a century has been small independent operators.

And while I understand change is hard for many — especially home town funeral directors who have “lived the life” of taking care of their community.  The fact that private equity is continuing to invest in Death Care should let us know that we have built a valuable commodity with our businesses.

Private equity is a reality all around the greater Death Care community at this time.  There is no doubt that the money they bring to the table will change the “business”.  However, the simple fact that they are investing in the industry/profession should tell us that our businesses may be more valuable, or have better growth potential, than we realize.

Many regional consolidators are financed with private equity capital which possibly allows owners to exit their business with higher values than might be available if those consolidators were not, at least sometimes, competing for the purchase.  And, it is not just funeral homes that are gaining value from these sales but the new technological businesses that are being formed to help the retail Death Care market —  some firms that you might do business with such as MJK Marketing, Frazer Consultants, SRS Computing, Tukios, Legacy.com and more on the periphery of funeral service are, or at one time, were part of private equity investors.

I think it is important to understand that some of us in the family funeral home business that are worrying about our revenue per service moving downward and see only a negative spiral for funeral service have a completey different outlook on our business than some in the professional financial markets do.  Only time will tell who is seeing it right.

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

When an investment is made in a business venture the investor has high hopes for a multiple return on their investment.  That can certainly be said for private equity companies who make some of those investments.

Unlike individual investors where passion may fuel the investment, most private equity investments are done with a large amount of due diligence put into the venture before the investment is consummated.  Because of that in-depth research, many private equity investments turn out to be wise decisions.

That is why I think the recent investment of 3 Boomerang Capital into human disposition alkaline hydrolysis company Bio-Response Solutions is very interesting . .  and potentially lucrative.  You can see a press release on that investment here.

Alkaline hydrolysis is now legal in over half of the United States.  See a map of those states here.

Here is the 3 Boomerang Capital website

Here is the website for Bio-Response Solutions

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  Even though human disposition via alkaline hydroysis is legal in over half of the states of the United States.  My thought is that it has not caught on among consumers as I thought it would by now.  I believe a part of the “why” of that situation is that the American consumer is not fully aware of it as funeral homes and other facilities with “flame cremation” equipment are interested in using that equipment rather than invest in the equipment necessary to operate an alkaline hydrolysis operation.

Another part of the “why” is that of the Catholic Church’s stand against it.  You can read about that in this article from Aleteia.

It is also a reminder that “flame” cremation did not catch on in America until 1963 when the Vatican’s Holy Office approved the process.  You can read about that here in this Catholic cremation timeline furnished by Better Place Forests.  At that time cremation was the choice of only about 4% of United States dispositions.

Related — Cremation in America 2001-2013 (with inter-active map).  Slate

My guess is that we are going to hear more about alkaline hydrolysis in the future and it could very well be that those who invest in the process now may reap the benefits.

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