Corporate Finance & Planning Insights for Multi-Generational Family Businesses
We are excited to offer our readers a physical version of our piece, “Dividend Policy in 30 Minutes: A Guide for Family Business Directors and Shareholders.” The purpose of this booklet is to help family business directors formulate and communicate a dividend policy that contributes to family shareholder wealth and satisfaction. We hope this provides a helpful resource for you and your fellow directors and shareholders.
Family business directors generally have little perspective on how other companies handle certain items like capital allocation, capital structure, and dividend policy. With the release of our 2025 Family Business Benchmarking Study, we aim to fill that gap.
This week’s post focuses on the study which provides an overview of U.S. macroeconomics and examines key financial areas relevant to family businesses. Each section includes both data analysis and insights to help family business directors interpret the findings and apply them to strategic decisions.
Our family business advisory practice is focused on three strategic financial questions that weigh on family business directors. In this week’s post, we review these three questions and how they create a solid, sustainable base for family businesses.
Almost a year ago, we published a case study looking at the corporate break-up of the venerable Kellogg Company into two separate businesses: Kellanova (snack foods) and WK Kellogg (breakfast cereals). From the announcement through the present, Kellogg shareholders have earned an annualized total return of 11.2%, far outpacing the returns of peer publicly traded packaged foods companies. Last year’s post included five takeaways for family business directors. In this week’s post, we reiterate those original takeaways and add a sixth.
If private equity and family business had a relationship status on social media, it would undoubtedly be “It’s Complicated.” Even if they would rather not be connected, in 2025, what happens to private equity affects family businesses. In this week’s post, we look at several stories about developments in private equity and discuss direct and indirect implications for family businesses.
When it comes to investor sentiment, 2025 has been a tale of two very different quarters. During the first quarter of 2025, GDP decreased at an annualized rate of 0.2%, consumer spending only marginally increased, and the ongoing risk of recession grew. As we officially transition from the first half of the year to the second, investors hope to continue what has been a historic recovery over the last three months.
As emerging investor optimism for the rest of 2025 washes away the Q1 uncertainty and pessimism, in this week’s post we focus on two key questions related to growth, risk, and the meaning of the family business: investment decisions and distribution policy.
Selling a business is a three-step process. In reality, each of the phases overlaps to some degree, making the process more of a continuum than a finite set of procedures. A turnkey, orderly process typically requires four to six months. Ultimately, the collective team goal as a family business is to win the race, whether it be at the pace of the hare or the tortoise. In this week’s post, we take a deeper dive into those three phases and what that may look like for you and your family business when the time comes.
As we approach the middle of the year, uncertainty in the U.S. economy remains elevated, making this a good time for family businesses to return to the fundamentals and review key macroeconomic indicators from the first quarter of 2025 and into the second quarter. This week’s post provides a brief look at these trends and their implications, as well as some key risks in the U.S. economy to stay aware of through the balance of 2025.
At their best, multi-generation family businesses foster superior outcomes for shareholders, employees, customers, suppliers, and the communities in which they operate. Those are powerful incentives for maintaining family control of businesses across generations and through decades. Yet this remains the exception rather than the rule. Why? Enterprising family businesses that don’t have shareholder alignment around key issues cannot expect to last.
In this week’s post, we identify three principal financial questions around which shareholder alignment is essential for enterprising families.
The uncertain macroeconomic environment is prompting corporate managers to consider how a recession would influence their businesses. So, now is a good time to highlight this theme and for family business directors to consider the same. How will your family business fare if a recession sets in, and how are expectations affecting the value of your family business today? When discussing value, we find it helpful to group expectations into three primary categories: cash flow, risk and return, and growth.
