The Journey Group
Established in 2016, The Journey Group specializes in acquiring and operating independently owned death-care businesses. Journey's management team has over 140 years of combined acquisition and operating experience in the death-care profession, having served in senior leadership positions at private and public companies. Most of the management team members are lifetime funeral and cemetery professionals and have managed organizations with over $1bn in revenues.
Investment Date: September 23, 2016
Type of Investment: Equity Financing
Board Representation: Board control
- Funds used to acquire and operate businesses in the death care industry.
- Accomplished management team and equity partners, with extensive experience acquiring and operating death care businesses.
- Businesses can be acquired for 6-8x EBITDA pre-synergies and converted to 5-7x post-acquisition synergies.
- Scale competitors trade at low double-digit to mid-teens EBITDA multiples, creating the opportunity for value accretion through multiple expansion in a strategic sale or IPO.
- The full-service cremation market is under-penetrated, despite the fact that it generates similar profits to traditional burials.
- Potential for rapid expansion of EBITDA margins by 5-10% from deep operational playbook that includes scale purchasing, centralization of back-office support, shared physical resources, and staffing efficiencies.