If you would ask Gemini Artificial Intelligence what percentage of funeral homes will be sold in the next five years, here is the answer that you will be given:

 

“While an exact percentage is hard to pinpoint, a significant portion of funeral homes, potentially around 35-40% of owners, plan to retire or sell in the next few years, driven by an aging owner base with no family successors, creating a large market for corporate acquisition by private equity firms looking to consolidate the industry. Many owners lack formal succession plans, making sales to larger groups an attractive exit strategy, despite challenges like rising costs.”

 

Of course, that is all speculation, but it is not only AI that thinks this phenomena will happen. . . . the talk about it is everywhere.  Why? —  It’s not only about the retirement age issue with no successor but it is also about other issues facing funeral home ownership.  Those issues include, not only margin compression, but a geographical re-balance of United States population making caseload numbers somewhat difficult to estimate in the coming years.  Finally, management issues and retention of employees is also another major reason that owners may look to exit the profession.

 

The good news for those looking to exit the profession in the next couple of years is that there will probably be more able and active buyers looking to purchase those funeral homes put up for sale than there has been at any time in the past.  And, if your funeral home fits into the correct caseload numbers and correct demographic area retiring owners will probably have multiple bidders for their property which should allow for a higher sales price.

 

It’s my opinion, and Funeral Director Daily is making it our “Business Story of the Year” for 2025, that the “Rise of the Regional” consolidators is the reason for this “competitive price” possibility.  In the past year I have seen the “Regional Consolidators” strengthen themselves financially and be more aggressive in their acquisition targets as they also realize that this is the opportune time for growth.  They are very aware that there is coming (or we are already in that period) where there is a greater number of these successful, long-held family funeral homes coming up for sale.

 

And, in most cases, these regional companies have amped up their credit facilities, equity partners, and their acquisition activities in anticipation of this activity.  Most have even expanded their historical geographical area outside of their historical scope to offer themselves more opportunities for new acquisitions.  The “Rise of the Regionals” also gives credence to private equity and private equity’s seemingly growing attitude that Death Care is a good place to park investment money for growth potential.

 

Who are these Regional companies that I feel will be on a “Buying” spree soon?  Here’s my list:

• East:  Rollings Funeral Service
• Northeast:  Milestone Funeral Partners
• Mideast/Southeast:  Pinnacle Funeral Service
• Mideast:  Altmeyer Funeral Homes
• American Heartland:  Newcomer Funeral Service Group
• Northern/Midwest:  Vertin Company
• Southwest:  Legacy Funeral Group
• West:  Impact Funeral Partners

 

In addition,  I will also mention that it will not only be the Regional Operators who will be looking for acquisitions but there are also what I call “National Cluster” groups such as Anthem Partners and Northstar Memorial Group who seem to operate nationally, but in area geographic clusters and not necessarily in a contiguous geographic area.

 

Finally there are “Geographically-fenced by Choice” companies such as Jersey Memorial Group, Smith Family Funeral Homes, and many others who seem to be conducive to what I would term “bolt-on” acquisitions in their chosen geographical area.

 

The Rise of the Regionals, the Cluster buyers, and the Geo-Fenced by Choice operators with the ambition, desire, and resources to grow provide more and more outlets to funeral home sellers.  Coupling that idea with the prognosis that there will be lots of Death Care businesses changing hands in the next couple of years is what gives rise to our decision that “The Rise of the Regionals” is Funeral Director Daily’s “Business Story of the Year for 2025”.

 

Editor’s Note:  Left out of this article are what Funeral Director Daily terms the “National Companies”.  We consider six companies in North America to be in that categorization.  They are Service Corporation International, Everstory Partners, Carriage Services, Park Lawn Corporation, Foundation Partners Group, and Arbor Memorial.  While there seems to be some limitations — for instance Everstory Partners and Park Lawn Corporation, to our knowledge, have no West Coast operations and Arbor Memorial is Canadian specific in locations — these companies have a national profile and have the resources to compete anywhere in North America.

 

While the Regionals are rising, these National Companies will also be competing to grow their network of operations. . . which is also good news for seller.

 

Related Articles:

• Why we are seeing more corporations in Death Care.  Cremation.Green
• Impact Funeral Partners finds big opportunity in small towns.  Funeral Vision
• Selling your funeral home?  Private buyers are a good option.  The New Bridge Group
• “There’s a lot of money in death.  Funeral home consolidation hits Western Mass.  The Shoestring

 

More news from the world of Death Care:  

• Unusual new funeral trend as Aussies opt for a “spectacular” way to go out.  Yahoo Life
• San Jose mortuary accused of mistakingly giving a parent his son’s brain in a bag.  Video news story and print article.  KRON TV 4 – San Francisco (CA)
• Everything that happens to your body between death and the funeral.  Metro (Great Britain)

 

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