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Family Business Director

Corporate Finance & Planning Insights for Multi-Generational Family Businesses

Is Growth Optional for Your Family Business?

The income statement is a natural place to begin analyzing a company’s financial results, and revenue is the natural starting point for that analysis. We recently heard someone remark that everything good in business starts with revenue, and our experience working with family businesses of all stripes confirms that sentiment. While the absolute amount of revenue can be instructive (i.e., are we looking at a $10 million business or a $100 million business?), it is the trend in revenue that is most revealing. Is the business growing, treading water, or shrinking?

October 15, 2018 Performance Measurement

Analyzing Public Company Data for Family Business Insights

Talking to the Numbers Introduction

Reading financial statements well is all about asking the right questions. In this series of posts, our goal is to help family business directors ask the right questions of their financial statements. Asking better questions leads to better financial and business decisions.

October 8, 2018 Capital Budgeting

Determining the Right Hurdle Rate

How Good is Good Enough?

If family business directors are going to make good capital allocation decisions, they need to know what the right hurdle rate is. If the hurdle rate is set too low, the family may experience weak future returns. Setting the hurdle rate too high, however, introduces the risk that the family business will pass on attractive investment opportunities. In this post, we consider how the hurdle rate relates to the weighted average cost of capital.

October 1, 2018 Capital Budgeting Capital Structure Dividend Policy M&A Performance Measurement Shareholder Engagement Taxes

What Keeps Family Business Directors Awake at Night?

Stewarding a multi-generation family business is a privilege that comes with certain responsibilities, and each family business faces a unique set of challenges at any given time. For some, shareholder engagement is not currently an issue, but establishing a workable management accountability program is. For others, dividend policy is easy, while next gen development weighs heavily. Through our family business advisory services practice, we work with successful families facing issues like these every day.

September 24, 2018 Capital Budgeting Capital Structure Dividend Policy M&A Performance Measurement Shareholder Engagement Shareholder Liquidity Special Topics Taxes Valuation

Launching the Family Business Director Blog

Corporate Finance & Planning Insights for Multi-Generational Family Businesses

This is the inaugural post for our Family Business Director blog. By way of introduction, we thought we would anticipate a few questions that you might have.