On Monday of this week Substack, under their “On Deathcare” platform released a very well researched article by author Tony Russo titled, “Why are we still pretending Homesteaders is ‘just’ a Park Lawn investor?”

You can access the article here.

In probably what is the best researched and in-depth article dealing with funeral home and cemetery consolidators and the preneed industry that I have read in quite some time, author Russo asks questions and, contemplatively, gives his opinions as to the answers to those questons.  In this feature article, here’s some of the questions, as described by me, he asks and answers:

• What is the relationship between Homesteaders Life Company, as an investor, and Park Lawn Corporation?

• How “Major” is a “Minor” investor, specific to the Park Lawn Corporation/Homesteaders Life Company relationship?

• In a universal sort of way, what is the growing relationships between the preneed companies and the funeral homes they serve or align with?

• Why was Park Lawn Corporation, as a public company, able to increase revenue, but not increase shareholder value —  as defined by stock price?

• What was behind the failed takeover attempt of Carriage Services by Park Lawn Corporation while it was still a public company?

• Are Park Lawn Corporation’s individual funeral homes given the opportunity to pursue the preneed provider that they feel best “fits” them or are they “pushed” to use “minority investor” Homesteaders Life Company as their provider?

• According to the article, Homesteaders Life Company recorded record profits last year and are on pace to do so again this year.  Author Russo questions, that as a “minor” investor will Homesteaders Life “pump” those profits back into Park Lawn Corporation. . . or not?

Tom Anderson
Funeral Director Daily

Funeral Director Daily:  As I said earlier, this is one of the best researched and informative articles that I have read lately on the growing trend of the consolidators in funeral service.  I would suggest that you read it.

I get a couple of contemplative thoughts from reading the article  —  first, are consolidators, on both the national and regional levels, continuing to buy funeral home operations for the sake of growth or are they able to deliver increasing value to the shareholders of the company?  I continue to believe that you can do both, but new acquisitions must be well thought out and strategic in terms of demographics and disposition choice composition that can deliver not only revenues, but profits, over an extended period of time.

Secondly, the growing influence of preneed companies on the financial side of Death Care is obvious.  They not only are collecting dollars on the preneed side of the business, but they are a growing presence on the lending side as well.  And now, as witnessed in the Park Lawn/Homesteaders combination, they are on the ownership side of the funeral home and cremation services component of Death Care . . . . . One might ask, “Is this growing influence and dominance good for our profession moving forward?”

The Greek philosopher Socrates said, “The secret of change is to focus all of your energy not on fighting the old, but on building the new.” . . . . I can’t help but think that the “Building the new” is coming to Death Care and we will see more and more business ownership combinations and relationships than we ever have before in the Death Care space as we move into the future.

More news from the world of Death Care:

• American funeral traditions are changing in an unexpected way.  Video news story and print article.  KGUN – TV 9 – Tucson (AZ)
• Lawmaker addresses consumer concerns related to funeral home legislation being considered in the Capitol.  Video news story and print article.  Denver 7 – ABC News (CO)
• Affordable farewells:  Reducing funeral costs while keeping it dignified.  The Money Pages (Great Britain)
• Green burial plan resurrected, location undisclosed.  The Leader (WA)
• “Human composting” along San Joaquin Riversparks debate.  But what’s behind it?  KVPR Public Radio – NPR affiliate – Fresno (CA)
• Veterans Memorial Cemetery wins national award for operational excellence.  The Daily Sentinel (CO)

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