Title: What Is Your Trust Company Worth Today?
Original Air Date: September 23, 2020
Presenters:  Matthew R. Crow, ASA, CFA (President) and Taryn E. Burgess, CFA, ABV (Senior Financial Analyst)

Is your independent trust company worth 2% of AUM?

During this time when the outlook for global markets, the economy, and one’s own health is uncertain, many trust company principals are working to nail down the unknowns associated with business ownership. Owners of independent trust cos are devoting more time to working on their buy-sell agreements in an effort to protect the working relationships with their partners and ensure they and their families are protected financially. While so much else is uncertain, the value of your independent trust company does not have to be.

Matt Crow and Taryn Burgess will explain valuation considerations for independent trust companies and why common rules of thumb don’t always work.

This webinar is tailored to owners and principals of independent trust companies, but many of the topics are relevant for owners of all investment management firms. Don’t miss it.

The following topics will be addressed:

  • The history of trust companies and how consolidation in the banking industry, changing consumer preferences, and favorable trust law changes have led to the proliferation of independent trust companies
  • Average trust company’s income statement and industry-wide trends, such as trust companies’ relative immunity to fee pressure
  • Valuation “rules-of-thumb,” and why they often fail to address the issues specific to a given firm
  • Various valuation methodologies, including the use of discounted cash flow models and guideline public company analysis
  • What public company multiples say about how a private trust company is valued
  • If industry transaction multiples are useful benchmarks in valuing a trust company

About the Speakers

Matt Crow leads Mercer Capital’s Investment Management Industry team.  The team provides RIAs, independent trust companies, broker-dealers, and investment consulting firms with valuation services related to corporate planning and reorganization, transactions, employee stock ownership plans, and tax issues as well as valuations of intangible assets, options, and assets subject to specific contractual restrictions. Matt and his team also consult with investment management clients in the process of selling or buying. Matt publishes research related to the investment management industry in the newsletter, Value Focus: Investment Management and is a regular contributor to Mercer Capital’s weekly blog, RIA Valuation Insights. He also has broad industry experience in insurance, real estate investment ventures, and technology companies accumulated by working with hundreds of client companies during his tenure at Mercer Capital.

Taryn Burgess has valuation experience in engagements related to corporate planning and reorganizations, financial reporting, fairness opinions, litigation support, employee stock ownership plans, and estate and gift tax planning and compliance matters. As a member of the firm’s Investment Management Industry team, Taryn publishes research on valuation issues related to the investment management industry in the newsletter, Value Focus: Investment Management. She also contributes regularly to Mercer Capital’s RIA Valuation Insights Blog.