Consolidation

ONE YEAR TO LIVE: THE RELEASED LETTER OF INTENT LETS NFDA FOLD SELECTED AFTER CLOSING

The first reporting on the released letter describes a one-year shutter clause, a bar on alternatives, and governance promises stamped non-binding.

Heidi MacomberSeptember 24, 20265 min read read

Members of Selected Independent Funeral Homes opened their merger ballots Thursday. They are voting on a letter of intent that became public this week, and the first reporting based on the document itself describes terms that contradict the assurances both boards used to sell the deal.

Tony Russo, publisher of the trade newsletter On Deathcare, reported Sept. 23 that the letter of intent allows the National Funeral Directors Association to rebrand, dismantle or otherwise fold up Selected one year after the acquisition closes. Russo cited people familiar with the document. Obitley has requested the letter from both organizations and has not obtained a copy; the descriptions below are his reporting, not Obitley's independent review.

Selected's ballot opened Sept. 24 and runs through Oct. 8. NFDA members vote on the bylaw changes that carry the merger over the same stretch, closing at 4 p.m. CT on Oct. 7.

Three public assurances, three different terms in the document as reported.

PRESERVATION VERSUS A CLOSING DATE. The July 29 joint announcement promised "preserving the unique strengths that have defined each organization." According to Russo's sources, the letter of intent gives NFDA a free hand to shut Selected down entirely one year after closing. In his words: "The only thing permanent about this deal is that Selected would no longer be an independent funeral home association."

THE OFFER VERSUS THE LOCK-UP. After members pushed back publicly, Selected board chair David Moore said the board would consider any solid business plan members might put forward. The letter of intent, as Russo reports it, barred Selected from seeking or entertaining any alternative while negotiating with NFDA. Russo, who broke the member-backlash story, called Moore's offer "patently false" and "bad faith theatre." Obitley asked Selected's media contact Thursday for Moore's response to that characterization and will update with any reply.

WHAT STAYS THE SAME VERSUS WHAT IS BINDING. Selected executive director Rob Paterkiewicz, in an interview with American Funeral Director, said "I would remain the executive director of Selected Independent Funeral Homes through the end of 2027" and that "2027 would be a normal year for Selected." Per Russo's sources, nearly every governance and operating promise in the letter, from advisory committee input to program continuity, is explicitly classified as non-binding, and NFDA holds "ultimate and sole discretion" over the acquired assets. The one commitment that carries a firm date in the document, per Russo's reporting, is Paterkiewicz's own contract, which runs through at least Dec. 31, 2027.

NFDA executive director Christine Pepper, in her own American Funeral Director interview, called transparency "critically important." The letter stayed sealed until a Sept. 14 demand letter from a lawyer representing member interests. Its release is, per Russo's reporting, the only demand the board has met so far.

BY THE NUMBERS

FactNumber
Time after closing when NFDA may rebrand, dismantle or fold Selected, per people familiar with the letter cited by On DeathcareOne year
Date through which Paterkiewicz's contract runs, at minimumDec. 31, 2027
NFDA members who NFDA says have contacted it directly with concerns about the merger1
Deadline the Sept. 14 demand letter gives Selected to answer, as Obitley reported first on Sept. 22Oct. 2

NFDA answered Russo's questions in writing. The statement said, in full: "The proposed transaction is not a purchase of Selected by NFDA. Legally, the transaction involves the dissolution of Selected as a separate entity and the transfer of its assets to NFDA as part of bringing the two organizations together."

That sentence matches what Obitley reported on Sept. 9: under the D.C. nonprofit code that governs Selected, dissolving the association and transferring its assets takes a simple majority of members voting, while NFDA's own bylaws require two-thirds support for the merger changes. NFDA members vote on theirs starting the same day Selected's ballot opened. The wording also moved. NFDA's own Better Together FAQ, live since July, describes the transaction this way: "From a legal perspective, however, the transaction would be structured as an acquisition of Selected Independent Funeral Homes by NFDA." An acquisition does not dissolve anything. A dissolution does.

On member sentiment, NFDA said the feedback it has received directly "has been positive" and that it is "aware of one NFDA member who contacted us directly to express concerns."

The vote is now running against two clocks. Russo reports the Selected board had about one day, as of his publication, to answer the remaining items in the demand letter before the opposition seeks an injunction suspending the ballot. And the opposition's own alternative plan, which opposition leader Nathanael Billow told Obitley on Sept. 22 would reach members before ballots opened, had not appeared publicly as of Obitley's check Thursday morning. Billow said in that interview the board had not answered the business plan he submitted Sept. 13.

Obitley reported the demand letter and its Oct. 2 deadline first on Sept. 22, the simple-majority math on Sept. 9, and the two-thirds versus simple-majority split in NFDA's own rules on Sept. 19.

Next: whether the injunction is filed, whether Billow's plan surfaces, and the vote counts the week of Oct. 5.


Sources: Russo's reporting: https://ondeathcare.substack.com/p/why-does-the-nfda-want-selected-dead (Sept. 23, 2026); Joint announcement: https://www.nfda.org/nfda-and-selected-independent-funeral-homes-announce-intent-to-combine-organizations/ (July 29, 2026); Paterkiewicz interview: kates-boylston.com, American Funeral Director; Pepper interview: kates-boylston.com, American Funeral Director; Obitley Sept. 22 (demand letter first): /stories/selected-opposition-plan-before-vote; Obitley Sept. 19: /stories/nfda-bylaws-vote-double-standard; Obitley member pushback: /stories/selected-members-oppose-nfda-takeover

selected independent funeral homesnfdamergerletter of intentshutter clausenon-bindingdissolutionvote
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