Family Business Director

Corporate Finance & Planning Insights for Multi-Generational Family Businesses

Category

COVID-19 Coverage


Planning & Strategy

Planning for Post-Pandemic Life for Family Businesses

Family directors have rightly been focused on keeping their people safe and healthy, and taking the steps necessary to help their businesses survive the pandemic.  It will eventually be time to look ahead, however.  When that time comes for your family business, what will you be thinking about? 

Performance Measurement

How Is Your Family Business Performing in the COVID-19 Pandemic?

One thing in short supply thus far in the pandemic has been perspective.  We know that GDP fell by more than 30% during the second quarter, but how does that translate into the actual financial performance of businesses?  Family business directors have been flying blind over the past few months, with no reliable way to benchmark the performance of their businesses. 

Earnings season for the second quarter of 2020 gives us the first opportunity to see how the COVID-19 pandemic is affecting businesses. In this post, we elaborate on four themes that emerge from the data.

Taxes

Now Is a Great Time to Transfer Stock to Heirs

Depressed Market Values Provide an Opportunity for Tax-Efficient Transfers of Family Wealth for Estate Planning Purposes

The economic effects of the COVID-19 pandemic are dire, and family businesses are not immune to the economic fallout from the virus. Yet we are confident that family businesses are best positioned to survive and lead in the post-pandemic economic recovery.

For family shareholders who are optimistic about the resilience of their family businesses and focused on the long view, this is an ideal time to execute intrafamily transfers in pursuit of estate planning objectives.

Planning & Strategy Taxes

A 2020 Estate Planning Reader

Amid a Global Pandemic, It's Easy to Lose Track of Some Big Things That are Going On

In this week’s post, we have assembled some helpful resources we have come across that provide helpful insight on the estate planning opportunities and strategies available to family business owners during 2020.

Special Topics

Family-Owned Real Estate in the Aftermath of COVID-19

Accumulating real estate seems to be a natural strategy for many family business owners. After all, real estate is generally assumed to be less risky than the operating business of the family. Further, so long as the properties have a reasonable range of alternative future uses, the returns to the real estate portfolio often have a low correlation to the returns from the operating business. However, the market data we review in this week’s posts suggests that these assumptions may not hold as well in a pandemic.

Planning & Strategy

What Makes a Forecast Useful for a Family Business?

Family businesses devote time and resources to creating forecasts and budgets to guide resource allocation and strategy decisions. Yet, the forecasts and budgets for 2020 that many family businesses spent months creating are now worthless. So managers and directors face the task of revising and updating those forecasts amid a uniquely uncertain environment that the pandemic has caused. In this post, we provide some ideas of how to “loosen up” forecasting models to make them more useful.

Taxes

Opportunity Times Two?

Estate Planning Opportunities Abound as a Result of Low Valuations and Low Interest Rates

As family business leaders tackle the many operating challenges thrust upon them by the COVID-19 pandemic, it is tempting to let tasks like estate planning fall to the bottom of the to-do list.  While estate planning may appear to be less pressing than other issues, the positive impact of effective planning on the long-term health of both the family and the family business is hard to overstate.  If you are confident in the long-term resilience of your family business, you should not miss the current opportunity for tax-efficient estate planning activity.

Special Topics

A COVID-19 Family Business Reader

Over the past several weeks, we have seen a lot of great content from folks we respect and admire on leading a family business through turbulence, and thought that we would compile a sampling for the benefit of our readers this week.

Planning & Strategy

Looking Back to Look Forward

We are not economic forecasters, so we are not attempting to make any predictions about the coronavirus or its economic effects.  However, in an effort to provide some context for ourselves, this week we decided to go back and examine some data from the Great Recession.

Special Topics Valuation

Coronavirus and the Value of Your Family Business

As family business leaders continue to make hard decisions in real-time against the ever-changing backdrop of the pandemic, their legal and tax advisors would do well to consider whether this is an opportune time for intra-family ownership transfers.  For many family businesses, the current economic uncertainty presents a unique, and perhaps fleeting, opportunity for more tax-efficient estate planning.

Consulting Services

Family Business Advisory Services

Mercer Capital provides financial education services and other strategic financial consulting to family businesses