Family businesses are built on long-term capital investments.  Capital structure refers to the mix of debt and equity financing used to make those investments.  In this video, we explore what capital structure means for family businesses, the effect of capital structure on the weighted average cost of capital, and some qualitative considerations to consider when establishing a target capital structure.

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Don’t forget to check out our dedicated family business site. The Family Business On Demand Resource Center is a one-stop shop for enterprising families and their advisors facing the financial challenges that are common to family businesses.  There, you’ll find a curated and organized diverse collection of resources from our staff of family business professionals, including more 5-minute videos, articles, whitepapers, books, and research studies.

The perspectives we offer here are rooted in our experiences at Mercer Capital, working with hundreds of enterprising families in thousands of engagements over the past forty years. Our main focus is on the financial challenges faced by family businesses like yours. There’s nothing else like it, and we look forward to your visit.