Recently Foundation Partners Group (FGP) issued this press release pertaining to an article which focused on their business and their business growth. It was pointed out that Orlando-based FGP, companywide, is approaching a 90% cremation rate in a death care world where the overall cremation rate (in the United States) is close to approaching 60%. In essence, Foundation Partners Group locations have a heavy cremation mix in their business.
According to Chief Financial Officer Thomas Kominsky, quoted in the press release, “(the company) serves more than 85,000 families annually in 21 states.” And next year, Kominsky believes that will be close to 100,000 families. The company continues on the growth through acquisition strategy.
Kominsky also points this out in the article, “We still certainly have more traditional funeral homes in more traditional parts of the country, but our goal is to focus on cremation heavy markets.” The cremation-first attitude recently led to the purchase of Kraft-Sussman Funeral & Cremation giving FPG a foothold in one of the highest-cremation areas in the country — Las Vegas.
Foundation Partners Group is very up-front with the “cremation-first” business model at this time. Back in 2017 when I first started blogging I recognized a couple of the FPG acquisitions and authored this article entitled, “Is Foundation Partners changing the acquisition paradigm?” I opine in that article, that if that cremation heavy firms are their targets, that strategy has much upside. I think time has shown that to be true. For years acquisition companies avoided cremation heavy firms. . . Foundation Partners Group, now using that strategy, has shown it can be a winning strategy.
It’s like anything else though. . . . .you need more revenues than expenses. . . and you need satisfied repeat families to continue the cycle. While Foundation Partners Group seems to have found a winning strategy. . . . the long range success will be measured in how the experiences of the families they serve are perceived. Because, I’m guessing that in every market they serve they will find low-cost direct cremation competitors competing for more and more of the market share.
Editor’s Note: Yesterday morning, for a period of about 60 minutes, our e-mail provider Mailchimp suffered an outage of some type. During that time our readers were not able to connect from their e-mail notices to our feature articles. Here is the article from yesterday that you may have missed: Going to Great Britain? Make sure you stay here.
Sorry for the inconvenience. Have a great weekend.
More news from the world of Death Care:
- More families rely on crowdfunding for funeral costs amid Covid-19 pandemic. WXYZ TV – Detroit (MI)
- Neutralisation of SARS-CoV-2 by anatomical embalming solutions. National Library of Medicine
- Fort Knox Cemetery retains National Shrine Status, one of only two to hold title Army-wide. Kentucky Today (KY)
- Local funeral home changes hands. Atlantic News Telegram (IA)
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