CA - Park Lawn: When The Acquirer Gets Acquired

2024-06-12 09:00:52 ET

Summary

• Park Lawn, a funeral home and cremation company, is going private in a $1.2B deal at a 62% premium.
• The company's attractive business model and growth potential made it appealing to private equity buyers.
• Lessons learned include staying confident in investment thesis, considering market context, and being prepared for the unexpected.

Please note all $ figures in , not , unless otherwise stated.

Introduction

I last wrote about Park Lawn ( PLC:CA ) in March 2024 , with my original article on the company in December 2023 . In the first time I analyzed and discussed the company, I noted that Park Lawn had been a best-in-class consolidator of the funeral home and cremation market, rolling-up small, mom-and-pop businesses and agglomerating them through a successful M&A strategy to roll-up the industry. Later, post-Q4 results and given its lack of coverage, I decided to once again re-iterate my investment thesis in March 2024, noting that the valuation was simply too cheap to ignore and that strong business results over time were not being reflected in the share price....

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