BTF : Disrupting Death
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Table of contents
Business Overview
Established: 2004
Black Tulip Funerals, initially known as Afterlife Funerals was founded as a family-owned and independent funeral service provider
Core Services
We offer in-house funeral services and operate a private crematorium, focusing on affordable, supportive funeral services that celebrate life.
Client-Centric Approach
We encourage active client involvement in customising services to ensure a personalised experience.
New Venture: "BLACK TULIP FUNERALS"
Leveraging our established infrastructure and in-house services, we’re launching a new brand focused on technology, personalisation, and social impact.
Vision & Mission
Vision
To lead the funeral service industry by exceeding client expectations, providing transparent and pressure-free experiences, and making a positive social impact.
Mission
To offer dignified funeral services at an affordable price, celebrate lives through personalised services, and empower individuals and communities facing end-of-life challenges.
Core Values
Compassion, innovation, transparency, and affordability guide our approach to serving families during their time of need.
Organisation Structure
BTF's Innovative Product Offerings
Leveraging our established infrastructure and in-house services, we’re launching a new brand focused on technology, personalisation, and social impact.
BTF: Eco-Friendly Funerals
BTF offers sustainable, environmentally-conscious funeral options. We utilise green technologies and ethical practices to reduce families’ carbon footprint while honouring their loved ones with care and reverence.
BTF Bespoke: Premium Personalised Experiences
To lead the funeral service industry by exceeding client expectations, providing transparent and pressure-free experiences, and making a positive social impact.
Brands
- Black Tulip Funerals
- Afterlife Funerals (founding brand)
- Ayara Funerals (Buddhist)
- Antyesti Funeral Services (Indian/Hindu)
- LGBTI Funerals
- Indigenous Ceremonies
Key Features
Exclusivity in Serving the Niche Market
We focus on providing specialised services to meet unique customer needs.
Pioneering Innovation
We offer innovative stationery and product offerings, thoroughly tested with external suppliers.
Personalised Service
Each client has a dedicated point of contact and access to global software for easy updates and tribute video creation.
Transparency and Flexibility
We provide authentic and transparent pricing, 24/7 availability, and flexible scheduling.
Competitive Landscape
| Company | Market Share |
|---|---|
| InvoCare | 26.4% |
| Propel Funeral Partners | 6.4% |
| Other | 67.2% |
Industry Overview
Industry Definition
Encompasses businesses operating funeral homes, crematoria, and cemeteries, providing services related to funerals, cremations, and burials.
Shifting Preferences
Increasing preference for lower-cost cremations and basic funeral packages over expensive burials.
Industry Growth
Driven by factors such as the number of deaths, average spend per funeral/cremation, and changes in household disposable incomes.
Key Trends Impacting the Funeral Industry
Demographic Shifts
The aging population is driving increased demand for funeral services. Providers must cater to the unique needs of this demographic.
Rising Death Rates in NSW
Projected increase in deaths in NSW puts pressure on funeral service providers to scale their operations.
Evolving Consumer Trends
Consumers desire more diverse, affordable, and technology-integrated funeral experiences.
Sustainability and Green Funerals
Growing demand for eco-friendly and sustainable funeral options, driven by environmental consciousness.
BTF's Competitive Advantage
Unique Value Proposition
Comprehensive in-house services at competitive prices, reducing logistical burden on bereaved families.
Customer-Centric Approach
Focus on affordability, transparency, and personalisation.
Technology Integration
AI-powered solutions for enhanced customer experience and operational efficiency.
Sustainable Moat
Created by unique services, technology integration, and strategic planning.
SWOT Analysis: Strengths
Financial Performance
High profitability compared to sector average, low product/service concentration, and high revenue per employee.
Innovation
Innovative use of AI and technology, comprehensive suite of services at competitive prices.
Business Model
All-encompassing, in-house service model with a focus on transparency and affordability.
Social Impact
Commitment to social impact and eco-friendly options.
Weaknesses, Opportunities, and Threats
Weaknesses
- High Customer Class Concentration
- High Capital Requirements
Opportunities
- Growing aging population
- Low revenue growth in the industry (2018-2025), indicating room for disruption
- Expanding AI applications to address unmet needs
Threats
- High-Performance Drivers (e.g., competition, economic conditions)
- Potential regulatory changes
- Market saturation and control by larger entities
Target Market Analysis
Market Share and Growth Potential
Serviceable Reachable Market
69,000 annual deaths in Sydney.
Growth Potential
Industry growth of 1.4% per annum and a large serviceable obtainable market.
Expansion Opportunities
Potential to capture additional market share through strategic expansion and innovative offerings.
Expansion Opportunities
Potential to capture additional market share through strategic expansion and innovative offerings.
Use of Funds
Financial Performance
Discounted Cashflow Model
Equity Valuation
Discounted Cash Flow Model
Estimated valuation based on projected cash flows and discount rate.
Comparable Transactions
Valuation based on recent transactions in the funeral industry, using EV/EBITDA multiples.
Transparency Premium & Liquidity Discount
Comparable Deals
Alignment with comparable deals in the space, such as Propel Funeral Partners’ IPO at an 11x multiple.
Prepaid Funeral Plans
Market Size
Over $1.3 billion in prepaid funeral plans/bonds in Australia.
InvoCare's Dominance
Benefits for Clients
Peace of mind, cost certainty, protection against inflation.
Benefits for Funera
Future revenue stream, community security, simple online application process.
Industry Awareness
- Recent acquisition of InvoCare by US private equity firm TPG Capital
- Potential consequences: Market saturation, price increases, reduced affordability
- BTF's stance: Educate communities, offer prepaid funerals, disruptive mode
Sustainable Energy
- Australia's first fully eco-friendly, solar-powered funeral home with UPS battery solution
- Demonstrates commitment to sustainability
- Potential for long-term cost savings
Inclusions
Chapels
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Live Streaming
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Urns
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Stationary
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Are you aware?
01
Funeral Industry Consolidation
The funeral industry has seen significant consolidation in recent years, with major players like InvoCare being acquired by large private equity firms. This trend towards industry consolidation raises concerns about the potential for reduced competition and increased prices for consumers.
02
Rising Costs and Affordability Concerns
As the funeral industry becomes more concentrated, there are growing worries that the costs of funerals will continue to rise, making them increasingly unaffordable for many families. This could limit access to meaningful end-of-life services and ceremonies, especially for lower-income communities.
03
Sustainability Challenges
Traditional funeral practices can have a significant environmental impact, from the use of embalming fluids to the energy-intensive cremation process. As awareness of sustainability issues grows, there is a need for the funeral industry to adopt more eco-friendly and sustainable approaches to better serve the needs of both families and the planet.
BTF's Exit Strategy
Target Valuation: $77M
Black Tulip Funerals aims for an IPO, targeting $7M EBITDA and an 11x multiple.
Industry EV/EBITDA Average: 18.43x
Industry analysis shows an average EV/EBITDA of 18.43x, potentially leading to a $120M valuation. However, a 35% liquidity discount is considered, resulting in a $78M valuation.
IPO Multiple: 11x
Black Tulip Funerals intends to utilise the same 11x multiple used by Propel Funeral Partners in their successful IPO.
01
Launch of AI Chatbot and Personalised Video Platform
Enhancing customer experience through innovative technology while leveraging AI and video, we are able to provide a more personalised and engaging experience for our customers, addressing their needs with greater efficiency and empathy.
02
Expansion into New Geographic Markets
Increasing our reach and serving more communities. Through strategic partnerships and targeted marketing efforts, we are expanding our footprint to bring our exceptional services to a wider audience, ensuring that more families can benefit from our compassionate approach.
03
Development of Grief Support Platform
Providing accessible emotional support to those in need. Recognising the profound impact that the loss of a loved one can have, we have developed a comprehensive grief support platform that offers a range of resources, from professional counselling to peer-to-peer support groups, all designed to help individuals navigate the healing process with care and understanding.
04
Key Hires to Support Growth
Attracting top talent to execute our expansion plans. To ensure the successful implementation of our growth strategy, we have made strategic hires across various departments, bringing on board industry experts and visionaries who share our commitment to innovation and excellence in the funeral services sector.
05
Launching Sustainable Cremation Solutions
Offering eco-friendly alternatives to traditional cremation. In response to the growing demand for more environmentally responsible end-of-life options, we have developed a range of sustainable cremation solutions that minimize the carbon footprint and use of resources, while still providing families with a meaningful and dignified farewell.
06
Expanding Prepaid Funeral Plans
Empowering families to plan ahead with confidence. Recognizing the importance of financial preparedness, we have expanded our prepaid funeral plan offerings, making it easier for individuals to pre-arrange and pre-pay for their final arrangements, providing peace of mind and ensuring that their wishes are honored.
Disclaimer
This legal disclaimer emphasises that the pitchbook is provided solely for informational purposes and should not be used as financial or investment advice. The reader is warned that any reliance on the information presented in the pitchbook is at their own risk and that Black Tulip Funerals do not guarantee the accuracy or completeness of the information contained therein.
The pitchbook is not intended to offer or solicit the sale or purchase of any securities or financial instruments, and any transactions or investments described in the pitchbook are subject to legal and regulatory requirements. Black Tulip Funerals makes no representations or warranties regarding the legality, suitability, or appropriateness of such transactions or investments.
Readers are firmly advised to seek advice from their financial and legal advisors before making investment decisions. By using this pitchbook, the reader acknowledges and agrees that they have read and understood this legal disclaimer and that they will not hold Black Tulip Funerals liable for any losses or damages resulting from their reliance on the information contained herein.
Contact Information
Social Impact Initiatives
01
Grief Support Platform
AI-powered platform offering personalised grief counselling and resources, accessible to anyone regardless of their ability to pay for Funera's services.
02
End-of-Life Planning Tools
Free online tools and resources to help individuals and families navigate end-of-life decisions and create personalised legacy projects.
03
End-of-Life Planning Tools
Free online tools and resources to help individuals and families navigate end-of-life decisions and create personalised legacy projects.