Gift, Estate, & Income Tax Compliance
2023 02 Value Matters

February 1, 2023

Mercer Capital’s Value Matters® 2023-02

Just Released: 2023 Benchmarking Guide for Family Business Directors

Growing up playing football, the team would gather after every game to run back the tape and review film. Rewatching games where you made a big play and the team won was always a good feeling. A loss? As my college coach from East Tennessee used to say, “Katy, bar the door.”

If 2021 was a comeback win for a lot of companies after the COVID-19 downturn, 2022 was like running into a stonewall defense. Rising interest rates, breakneck inflation, and the Russia-Ukraine conflict stifled offenses like the ’85 Bears. But despite some bumps and bruises, the tape was more favorable than one might have expected.  While shareholder returns were down with a broad decline in equity markets, EBITDA margins held up, albeit unevenly across industries, and total distributions (distributions and share repurchases) rose considerably over 2021. Or for a coaching cliché: “The game was really a lot closer than the scoreboard would indicate.”

We are happy to share the release of our 2023 Benchmarking Guide for Family Business Directors. Benchmarking helps provide valuable context to directors when making their most critical decisions: what should our dividend policy be, what investments should we make, and how should we finance our business?  For our benchmarking report, we use the Russell 3000 Index Companies, excluding financial institutions, real estate companies, and utilities. We also exclude companies with less than $10 million in revenue in 2022. We sort the data into f ive quintiles based on company sizes and the following industries.

This article summarizes some of our financing, operating, investing, and distribution findings. For a comprehensive and detailed report on all the above questions, download the full guide.

How Much Money Do Companies Like Ours Make?

Inflation may have originally been billed as transitory and only here for a short visit, but 2022 showed us CPI is not taking the hint. The 12-month percentage change in Consumer Price Index, or CPI, has run north of 2% every month since March of 2021, with 2022 exceeding 6% the entire year. Redhot inflation does appear to have been finally shown the door, with growth peaking in June 2022, but CPI is still well above recent historical norms and Federal Reserve targets.

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When an Old Valuation Becomes a Liability
When an Old Valuation Becomes a Liability
An outdated valuation can create more risk than no valuation at all when it is quietly relied upon in governance decisions. Family businesses that treat valuation as a living discipline, rather than a fixed conclusion, reduce the risk of conflict and misalignment over time.
February 2026 | Defensible Gift and Estate Tax Valuations
Value Matters® February 2026

Defensible Gift and Estate Tax Valuations

IRS scrutiny of gift and estate tax valuations typically arises not from a single issue, but from patterns of weak support, inconsistent assumptions, or a disconnect between the rights of the interest being valued and the conclusions reached. Examinations often focus on whether discounts for lack of marketability, tax affecting for pass-through entities, projected cash flows, growth rates, and discount rates are grounded in company-specific facts and supported by relevant capital market evidence. Valuations that fail to clearly tie empirical data to the economic realities of the subject interest are more likely to invite challenge.
Mercer Capital Proudly Sponsors and Attends the ACTEC 2026 Annual Meeting
Mercer Capital Proudly Sponsors and Attends the ACTEC 2026 Annual Meeting
Mercer Capital is pleased to again sponsor the American College of Trust and Estate Counsel’s (ACTEC) 2026 Annual Meeting, taking place March 4–8, 2026, in Tampa, Florida. As a valued partner in the trust and estate planning community, Mercer Capital is proud to support this premier event, which brings together leading legal and financial professionals to explore today’s most pressing issues in trust and estate law, planning, and related advisory matters.The ACTEC Annual Meeting features an extensive program of professional seminars, committee sessions, and networking activities, hosted at the JW Marriott Water Street and the Tampa Marriott Water Street in Tampa Bay. Attendees can engage in deep dives on emerging legal trends, practical planning strategies, and peer-to-peer dialogue throughout the week.Mercer Capital’s Travis W. Harms, CFA, CPA, ABV; Timothy K. Bronza, CPA, ASA; and Thomas C. Insalaco, CFA, ASA will be attending this year. Their participation reflects the firm’s deep commitment to ongoing education and to providing thoughtful and objective valuation, tax, and advisory insight to the trust and estate community.Travis Harms is President of Mercer Capital and leads the firm’s Family Business Advisory Services Group. With deep expertise in valuation for gift, estate, and income tax planning, Travis provides strategic financial consulting and education to multi-generation family businesses, helping align financial realities with long-term succession goals.Tim Bronza serves as Managing Director of Mercer Capital’s Florida office. He brings extensive experience valuing business interests for federal gift, estate, and income tax purposes supporting sophisticated valuation assignments across corporate and fiduciary contexts.Tom Insalaco is a Senior Vice President in Mercer Capital’s Florida office. Since 2008, Tom has performed valuation analyses for a broad range of industries, assisting attorneys, fiduciaries, and financial professionals with estate planning, exit planning, and transactional valuation needs.Mercer Capital looks forward to seeing old friends and making new ones during the meeting. For more information about Mercer Capital’s Gift, Estate, and Income Tax Compliance practice, click here.

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