By Thomas A. Parmalee
In a recent episode of The Graveyard Shift, sponsored by Passare, two of the most influential voices in funeral service — Chris Cruger, CEO of The Foresight Companies, and Jake Johnson, president and CEO of Johnson Consulting Group — offered a candid, practical and at times sobering conversation about succession planning, business value and long-term vision.
In my personal opinion, it is one of the most consequential episodes the podcast has released, and every funeral home owner or aspiring owner should take the time to watch it.
Below are just a few of the key insights from the program.
Succession Planning: The Industry’s Blind Spot
Cruger and Johnson point to a recent National Funeral Directors Association study that uncovered an alarming truth: only about 53% of funeral home owners know the value of their business. This is especially troubling given that more than 46% expect to transition out of their business within the next five years.
Cruger calls the data “terrifying,” and Johnson draws a comparison that resonates with every funeral professional: funeral directors know they will die someday, yet many still avoid preplanning. Succession planning is no different. Ignoring it does not make the outcome better — it only limits your options.
Johnson notes that too many owners believe they can maintain their current lifestyle after selling, only to discover that taxes, debt obligations and the realities of the market tell a different story. “Ignorance is bliss,” he says. “But once you know what your business is actually worth, you may start questioning not only your exit plan, but what you want your future to look like.”
Planning Early Can Increase Your Business Value by 20 Percent or More
Cruger emphasizes that the difference between a well-planned exit and no plan at all can swing business value by 20% or more. Just as important: early planning helps identify the right successor, whether internal or external.
Contrary to popular belief, buyers today are not just chasing profits. Many place significant weight on legacy, community ties and the long-term health of the business. They want to know that the culture, staff, and community relationships will endure.
But buyers are also more selective than ever. The days of acquiring 30–80 call firms at premium prices — common in the 1990s — are gone. Today’s buyers are cautious, data-driven, and intensely focused on due diligence. As Cruger puts it: “Trust but verify. And there’s a lot more verifying now.”
Your Staff Can Make — or Break — Your Valuation
Both leaders stress that staffing is now one of the most influential valuation factors. Labor often represents 30–40% of costs, and buyers will walk away if the team is unstable, underperforming, or overpaid relative to results.
Cruger has seen deals fall apart solely because the key staff member was leaving. Johnson adds that inconsistent payroll structures or poor financial categorization can further suppress value or scare buyers entirely.
If you want to maximize your business’s worth, Cruger says, you must invest in people.
Owners Must Recognize Their Strengths—and Their Weaknesses
One of Johnson’s strongest messages is that great funeral directors are not automatically great managers or great owners. Ownership requires different competencies, including financial literacy, strategic planning and the humility to ask for help.
“The good news,” Johnson says, “is that today there is help everywhere.” Consultants, mentors, and training resources exist precisely to close these gaps — if owners are willing to acknowledge the need.
Cruger encourages prospective owners to prepare early: have strong credit, cultivate mentors, ask questions and keep your ears open for opportunities. Industry consolidation has changed, but opportunity still exists across the country for those who are prepared.
Many Owners Have 70–90% of Their Net Worth Tied to the Business
With so much personal wealth concentrated in a single asset, failing to plan is more than risky — it’s potentially catastrophic. Both executives warn that waiting too long can leave an owner with limited options, especially if health declines or market conditions shift.
Matt Bailey, one of the hosts, recalls individuals in other industries who counted on their business as their retirement plan — only to see it wiped out when competitors moved in. Funeral service is not immune to similar disruptions.
Cruger’s advice is direct: “If you don’t have a plan, start one. You have to — for your survival and for the people you care about.”
Why Your Vision Should Be “Big, Hairy, and Audacious”
One of the most energizing moments in the episode comes when Johnson shares his belief in “BHAGs”—Big Hairy Audacious Goals. Many owners, he argues, set their sights far too low. When they achieve those modest goals, they believe they’ve hit a home run, without realizing they could have achieved so much more.
“There’s nothing wrong with setting goals that seem ridiculous,” Johnson says. Whether you are early in your career or preparing for your exit, ambitious goals can reshape what you accomplish.
For those who are not aiming for ownership, Bailey points out that opportunities still abound: roles are evolving, markets are shifting and talented, hardworking professionals can advance quickly if they recognize the openings in front of them.
Do Not Delay. Start Now.
Whether you plan to sell in two years or twenty, succession planning is not optional. It is essential to protecting your wealth, your staff, your legacy and the community you serve.
This episode of The Graveyard Shift is a rare opportunity to hear two top industry leaders speak openly — without sugarcoating — about the realities facing funeral home owners today. Their guidance is invaluable, practical, and immediately actionable.
