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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A Mid-Year Check-In for Family Business Directors
A Mid-Year Check-In for Family Business Directors
Family business directors should use the mid-year point to reassess whether growth plans still fit the company’s financial capacity and shareholder goals. This blog emphasizes that successful acquisitions depend on strategic fit, organizational readiness, and disciplined advisory support.
Mercer Capital to Sponsor TexasBarCLE’s 50th Annual Advanced Estate Planning & Probate Course
Mercer Capital to Sponsor TexasBarCLE’s 50th Annual Advanced Estate Planning & Probate Course
Mercer Capital is pleased to sponsor TexasBarCLE’s 50th Annual Advanced Estate Planning & Probate course, taking place June 3 -5, 2026, at the Hyatt Regency Frisco-Dallas. J. David Smith, CFA, ASA, and Andrew B. Frew, ASA, ABV, will attend on behalf of the firm.Hosted by TexasBarCLE and cosponsored by the Real Estate, Probate & Trust Law Section of the State Bar of Texas, the annual course brings together estate planning and probate professionals for three days of focused education and discussion. This year’s agenda includes sessions on case law updates, fiduciary issues, grantor trusts, retirement benefits, will contests, and current developments in estate planning tax law.David Smith is a Senior Vice President at Mercer Capital and a senior member of the firm’s tax practice. He provides valuation services for tax planning, transactional purposes, and financial reporting, with particular experience in industries including financial services, oil and gas, and biotechnology. David is also a regular contributor to Mercer Capital’s Value Matters Newsletter.Andrew Frew is a Vice President at Mercer Capital and has nearly 25 years of business valuation experience. He has been involved with hundreds of valuation and related engagements across numerous industries and values businesses and business interests for gift and estate tax, charitable giving, buy-sell agreements, mergers and acquisitions, business succession and exit planning, and litigation support purposes.Mercer Capital regularly assists attorneys, fiduciaries, and advisors with valuation matters that arise in estate planning, probate, tax planning, and related disputes. The firm is pleased to support programs that help professionals address the financial issues that often accompany trusts, estates, and closely held business interests.Mercer Capital looks forward to connecting with attendees in Frisco. Additional information about the course is available through TexasBarCLE: https://www.texasbarcle.com/.
No Dividend Is Forever: What Whirlpool’s Suspension Teaches Family Business Directors
No Dividend Is Forever

What Whirlpool’s Suspension Teaches Family Business Directors

Whirlpool’s decision to suspend its dividend after 70 years highlights the importance of aligning dividend policy with sustainable cash flow, leverage, and reinvestment priorities. Family business directors can use the example as a framework for evaluating how dividend decisions affect shareholder expectations, financial flexibility, and long-term enterprise value.

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