Family Business Advisory Services

November 6, 2023

Capital Budgeting in 5 Minutes

New Video Released on Family Business On Demand Resource Center

Capital budgeting can’t be avoided — the only question is whether your family business has a consistent and disciplined process for evaluating potential investments or instead makes significant capital commitments in a more haphazard way. In this video, we describe the key elements of the capital budgeting cycle and identify some common potholes along the way.


Click here to watch the video

(you will be redirected to www.familybusinessondemand.com)


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.

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What Family Business Directors and Shareholders Can Learn from an Annual Valuation
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Annual business valuations provide family business directors and shareholders with insight into the factors driving changes in company value, helping inform capital allocation, shareholder policies, and long-term financial planning. Establishing a consistent valuation process also supports more informed decisions and realistic expectations regarding future ownership transactions.
Why Dividend Payout Ratios Don't Tell the Whole Story
Why Dividend Payout Ratios Don't Tell the Whole Story
Dividend payout ratios offer a useful benchmark, but they do not explain whether distributions are sustainable or aligned with a company’s broader capital allocation priorities. Directors should evaluate dividends alongside reinvestment opportunities, balance sheet needs, and shareholder expectations.

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