Value Creation Actions (Episode 2): Behind the Scenes of Funecap's Success Story: 300 Acquisitions in 13 Years!

Founded in January 2010 by Thierry Gisserot and Xavier Thoumieux, Funecap Groupe began with a clear vision: to consolidate and revolutionize the fragmented funeral services sector.

Genesis and Evolution

Founded in January 2010 by Thierry Gisserot and Xavier Thoumieux, Funecap Groupe began with a clear vision: to consolidate and revolutionize the fragmented funeral services sector.

In just thirteen years, Funecap has transformed from a newcomer to a European leader through an aggressive growth strategy and strategic acquisitions.

Since its inception, Funecap has completed over 300 acquisitions, consolidating a fragmented market and expanding its footprint across Europe.

Among the key acquisitions are Pompes Funèbres Pascal Leclerc (the first!), Rebillon, France Obsèques, La Société des Crématoriums de France, and ROC ECLERC. These operations have strengthened Funecap’s presence and ensured sustained growth.

A key strategy in Funecap’s acquisitions is the speed of execution and an attractive payment method for sellers: a high immediate cash payment, followed by an additional cash payment two to three years later, based on a significantly higher valuation.

This incentivizing approach has allowed Funecap to secure numerous acquisitions quickly and efficiently.

 

Financial Performance

The numbers speak for themselves. In 2019, Funecap’s revenue amounted to €236 million.

For 2023, the group is expected to exceed €600 million in revenue with an EBITDA of €150 million (25% EBITDA margin). This exceptional growth results from an aggressive M&A strategy and controlled geographic expansion.

Funecap is now a key player in the European funeral market, with over 100 crematoriums and 600 agencies, serving more than 300,000 families each year.

Acquisitions have been made in strategic regions, allowing Funecap to hold near-monopolistic market shares in each area.

Thus, the company becomes nearly unassailable in its markets, granting it strong negotiating power with suppliers and pricing power with clients.

The support of financial partners such as Latour Capital and Charterhouse Capital Partners has been crucial for this expansion.

Since 2018, these partners have provided the capital and strategic advice necessary to support the group’s growth. In 2021, Funecap secured €600 million in unitranche financing from ICG, with an additional €250 million commitment in 2023, bringing total debt to €1.2 billion, including undrawn lines.

This financial war chest has been obtained thanks to the group’s exceptional performance.

 

Future and Outlook

The future of Funecap looks equally ambitious. The group plans to consolidate its bases in Italy, Germany, Austria, and the Benelux.

“The association of leaders with the capital is crucial because each country has its specificities,” explains Xavier Thoumieux. Funecap adapts its operational models for each market, taking into account cultural and regulatory differences.

By the end of 2023, Funecap had around €400 million available for its build-ups, add-ons, and organic developments.

Ten crematoriums are under construction in France, along with half a dozen for animal cremation. Meanwhile, the group continues to develop its funeral pre-arrangement business, with around 30,000 new contracts per year. However, the majority of funds will be allocated to external growth, with 20 to 30 operations planned per year.

These efforts should allow Funecap to reach between €800 million and €1 billion in revenue within three to five years.

The story of Funecap is an example of the power of strategic consolidation and value creation in a previously fragmented sector, such as the funeral industry.

In a nutsell:

At OutMatch, we support organizations in creating and implementing their value creation strategies.

For more information, feel free to contact: loic.gach@outmatch.fr

 

 

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