Foresight

Overview: This case study follows Pellerin Funeral Homes from its 1921 founding to its 2022 sale, highlighting a 30-year partnership with Foresight that helped the family navigate change, streamline operations, and plan a successful succession. A BUSINESS EVOLVES Founded in 1921 by Harris J. Pellerin, the business grew from humble beginnings in Breaux Bridge, Louisiana, offering undertaking, embalming, and ambulance services. In 1962, Harris’s son, Ray Pellerin, took over leadership in his 20s after enrolling in mortuary school. Under Ray’s direction, Pellerin Funeral Homes expanded to Henderson, St. Martinville, and Arnaudville, becoming a regional leader in funeral service. A PARTNERSHIP BEGINS In the 1980s, Ray Pellerin attended a presentation by Dan Isard of Foresight at a National Funeral Directors Association convention. That meeting sparked a consulting relationship that would last three decades, guiding the business through growth, innovation, and, ultimately, […]

The Challenge: Following the COVID-19 pandemic, one funeral home faced a familiar but urgent challenge: declining case counts coupled with reduced revenue per call. Although total revenue grew modestly from 2019 to 2023, profitability was impacted by this drop in per-call performance. This prompted the owner to engage Foresight to stabilize revenue and improve overall financial health. The Solution: Milestone #1: Pricing Optimization Foresight conducted a detailed review of overhead costs and identified strategic pricing adjustments across services and merchandise. The adjustments added over $1,000 revenue per call within a single year (2023 to 2024), significantly improving margins without sacrificing competitiveness. Milestone #2: Merchandise Diversification To counterbalance lower case volume, Foresight recommended expanding merchandise offerings. After assessing market potential, the client introduced gravestones and monuments. This initiative generated a 180% increase in merchandise sales revenue in 2024, creating a new […]

Written by Wendy Russell Wiener, Managing Member, WRW Legal and Liz Apolonio, Legal Administrative Assistant, WRW Legal Target identified – CHECK! (with the help of Foresight, of course!) Letter of Intent – CHECK! Due diligence complete – CHECK? Asset Purchase Agreement – CHECK! Closing – NOT SO FAST! So many states require prior approval of a change of ownership of a cemetery, funeral home or crematory; yet so many buyers and sellers overlook the requirement in their rush to the closing table.  Every week clients approach us at WRW Legal to help them secure approval from their state regulator for the change of ownership they have planned.  Recently, we were lamenting, if only there were a way for us to get the word out that getting those applications in early is crucial! What you should know and do: Know your […]

The Challenge Selling a business is a major financial and emotional milestone, often complicated by family dynamics and long-term planning. While advisors are essential, success depends on their alignment, clear communication, and guidance throughout the process. When a family-owned funeral home faced delays and confusion from fragmented advice, Foresight was brought in to coordinate the team and ensure a successful sale. The Solution Milestone #1: Choosing a Successor The owners hoped their grandchildren would take over, but their inexperience and limited financing made this unfeasible. The bank’s initial advice was vague and overly optimistic. In reality, the deal required a significant discount and risky seller financing, exposing the owners if the grandchildren defaulted on payments. Once this was clear, the family opted for a third-party sale, allowing the grandchildren to grow in the business without heavy debt. Milestone #2: Choosing […]

In a significant move, the Federal Trade Commission (FTC) made waves in April by nullifying and prohibiting noncompete clauses in the majority of employment contracts. While this ruling raises questions for various sectors, its impact on funeral homes and cemeteries remains uncertain, primarily due to historical difficulties in enforcing overly broad noncompetes. Funeral directors’ agreements epitomize the type of contracts under scrutiny by the FTC. Understandably, no enterprise welcomes additional regulatory hurdles. Yet, within the funeral and cemetery profession, noncompete clauses provoke distinct relational and practical considerations. Reflecting on transactions dating back to the mid-1990s, the crux of the matter lies in the feasibility of restricting individuals from pursuing their livelihoods. It is important to note that limitations on professional mobility are problematic. However, perceptions may shift if ample compensation is provided for other reasons. The crux of the matter […]

Succession planning is an essential process that ensures the seamless transition of leadership and ownership within a business, from one generation to the next or even to new proprietors. In the traditional world of the funeral profession, where family ownership has long been the norm, passing down the business to the next generation was often seen as an inevitable path. However, the landscape is shifting.  Sustaining and growing multigenerational funeral homes has become increasingly challenging. In this blog post, we will delve into the intricacies of succession planning in the funeral profession, using insights from the 2023 NFDA Member Succession Planning Study as our guide. We will explore the evolving challenges faced by funeral professionals, delve into the critical elements of succession planning, and emphasize the necessity of early preparations and expert guidance. The Changing Landscape of Succession in Funeral […]