Gift, Estate, & Income Tax Compliance

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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What Questions Should Every Family Business Director Be Asking Before Year-End?
What Questions Should Every Family Business Director Be Asking Before Year-End?

You Asked. We Answer.

Family business directors can use year-end planning to reassess performance measures, capital allocation, shareholder alignment, and unresolved governance issues. Asking better questions can help boards enter the coming year with clearer priorities and a stronger decision-making framework.
Mercer Capital to Sponsor ACTEC Florida Fellows Meeting
Mercer Capital to Sponsor ACTEC Florida Fellows Meeting
Mercer Capital is pleased to sponsor ACTEC’s 2026 Florida Fellows Meeting, taking place Wednesday, August 19, 2026, at The Breakers in Palm Beach, Florida. Tim Bronza, CPA, ASA, and Sujan Rajbhandary, CPA, ABV, will represent the firm at the meeting.ACTEC, the American College of Trust and Estate Counsel, is an organization of trust and estate lawyers and law professors in the United States and around the world. Its Fellows are committed to maintaining excellence in the trust and estate legal field and improving the practice of trust and estate law.The 2026 Florida Fellows Meeting will feature an afternoon of educational programming, networking, and discussion during ACTEC’s return to The Breakers. This year’s program includes sessions on trust litigation, single-member LLC planning, and the legal, ethical, and practical challenges attorneys face when counseling clients on disinheritance.Tim Bronza serves as Managing Director of Mercer Capital’s Florida office. He has extensive experience valuing business interests for federal gift, estate, and income tax purposes and leads sophisticated valuation engagements across corporate and fiduciary contexts.Sujan Rajbhandary is a Senior Vice President with Mercer Capital and a member of the firm’s Gift, Estate & Income Tax Group. He has 20 years of experience advising closely held businesses, family-owned enterprises, and public companies on valuation and tax planning matters. He is a regular contributor to Mercer Capital’s Value Matters Newsletter.Mercer Capital regularly works with owners, fiduciaries, and professional advisors on valuation and advisory matters involving trusts, estates, tax planning, transactions, and disputes. The firm is pleased to support educational programs that help professionals navigate complex financial issues in estate and trust matters.Mercer Capital looks forward to connecting with attendees in Palm Beach. To learn more about this year’s conference, visit the Florida Fellows Meeting website: https://events.rdmobile.com/Events/Details/19947
Why Are Shareholders Surprised by Board Decisions?
Why Are Shareholders Surprised by Board Decisions?

You Asked. We Answer.

Clear communication and sustained shareholder education can help family business owners understand the trade-offs behind board decisions. Giving shareholders greater context can reduce surprises, improve strategic discussions, and strengthen governance.

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