Family businesses are built on long-term capital investments. Capital structure refers to the mix of debt and equity financing used to make those investments. In this video, we explore what capital structure means for family businesses, the effect of capital structure on the weighted average cost of capital, and some qualitative considerations to consider when establishing a target capital structure.

Speaker: Travis W. Harms, CFA, CPA/ABV

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 is 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.

Speaker: Travis W. Harms, CFA, CPA/ABV

Revenue growth and profitability are critical measures for the health of any family business, but by themselves, they tell only half of the story. As a family business director, you need the whole story. We’re not aware if Paul Harvey was a financial analyst, but if he were, we suspect his favorite performance metric would have been return on invested capital (ROIC), because it tells you the Rest of the Story.

Speaker: Travis W. Harms, CFA, CPA/ABV

In this video, Atticus Frank breaks down the top five reasons why your family business should consider conducting a shareholder survey. He emphasizes how these surveys can provide critical insights into shareholder perspectives, facilitate informed business decisions, and enhance communication among family members involved in the business. From uncovering deeply held views to promoting educated and engaged shareholders, the video offers valuable guidance for multi-generational family businesses looking to align interests and build trust.

Speaker: Atticus L. Frank, CFA, ABV

Travis Harms provides an insightful examination into the important topic of dividend policy in family businesses. He explains how to go about the decision-making process regarding distribution and why considering various shareholder characteristics and business attributes matters. He breaks it down into four types of dividend policies, highlighting the balance between shareholder certainty and board discretion, fostering a better understanding of maintaining the sustainability of the business, and promoting positive shareholder engagement.

Speaker: Travis W. Harms, CFA, CPA/ABV

In this video Tripp Crews discusses a few key economic indicators that family business owners and directors would be well-served to keep an eye on as we continue to navigate through a turbulent macroeconomic environment. Having a working knowledge of these indicators can help inform decision making processes for owners and directors both in the office and in the board room.

Speaker: John T. (Tripp) Crews, III

Join Zac Lange from Mercer Capital as he guides you through the comprehensive process of business valuation. His walkthrough reveals the important steps of a valuation, from defining the engagement, gathering and analyzing relevant data, to selecting appropriate valuation approaches, and finally issuing the report. He emphasizes the importance of understanding the company's specific context, industry, and economic environment, and how different levels of control and marketability can impact a company's value.

Speaker: Zac L. Lange, CPA

Family shareholders are entitled to know what long term strategic decisions are being made on their behalf by the managers and directors of the family business and why those decisions are being made. In this video Travis Harms discusses three fundamental corporate finance questions that will help family business shareholders understand the basics of corporate finance and will ultimately result in more engaged and valuable shareholders.

Speaker: Travis W. Harms, CFA, CPA/ABV

Estate planning may appear to be less pressing than other issues on your family business’ radar. However, the positive impact of effective planning on the long-term health of both the family and the family business is hard to overstate. In this video, Atticus Frank covers some reminders and quick to-dos to help you and your family implement your estate planning goals.

Speaker: Atticus L. Frank, CFA, ABV

Family business directors and shareholders do not need to be valuation experts. However, there are six basic valuation principles that can help directors and shareholders make better long-term financial decisions for their family businesses. In this video, we identify and explain these six principles, which are great additions to your family business toolbox.

Speaker: Travis W. Harms, CFA, CPA/ABV

It is understandably frustrating for family business directors when the simple question – what is our family business worth? – elicits a complicated answer. While we would certainly prefer to give a simple answer, the reality a valuation is attempting to describe is not simple. The answer depends on why the question is being asked. We know that sounds suspect, but in this video, we demonstrate why it’s not.

Speaker: Travis W. Harms, CFA, CPA/ABV

The creation of buy-sell agreements involves a certain amount of future-thinking. The parties must think about what could, might, or will happen and write an agreement that will work for all sides in the event an agreement is triggered at some unknown time in the future. In this video, Chris Mercer presents the six reasons your buy-sell agreement may not work as intended and how to address those issues.

Speaker: Z. Christopher Mercer, FASA, CFA, ABAR

What is an employee stock ownership plan (ESOP)? Is it right for your business? In this video, Tim Lee discusses employee stock ownership plans and how an ESOP could potentially fit into your family business.

Speaker: Timothy R. Lee, ASA

What do you do if your family business is approached by a potential acquirer? In this video, Nick Heinz presents four broad steps you should undertake to determine if the potential acquisition makes sense for your business and your family.

Speaker: Nicholas J. Heinz, ASA

Risk management in a family-owned business can be tricky. In this video, Lucas Parris highlights three risk management strategies that, from a valuation and financial perspective, can have a positive impact on a family business.

Speaker: Lucas Parris, CFA, ASA-BV/IA

Access to capital is important for family businesses. In this video, Jeff Davis discusses sources of capital, capital providers, and capital structure.

Speaker: Jeff K. Davis, CFA

Mineral rights are the ownership of all rights to gas, oil, and other minerals at or below the surface of a tract of land (per the U.S. Mineral Exchange). In this video, Bryce Erickson explains the investment characteristics and valuation considerations of mineral rights.

Speaker: Bryce Erickson, ASA, MRICS

In our experience, there are four basic economic meanings that a family business can have for family shareholders. In this video, Travis Harms explains these meanings and why knowing these meanings is essential to the long-term sustainability of your family business.

Speaker: Travis W. Harms, CFA, CPA/ABV

In this video, Matt Crow and Brooks Hamner discuss the world of money management, the difference between a wealth management firm and a trust company, the services these firms provide and the fees they charge, and explain why the fiduciary standard matters. They wrap up the video with nine questions to ask a potential advisor.

Speakers: Matt Crow, CFA, ASA & Brooks Hamner CFA, ASA

Venture investing can be challenging. In this video, Sujan Rajbhandary and Jay Wilson discuss why your family business should pursue venture investing and why it shouldn’t along with an overview of staged financing.

Speakers: Sujan Rajbhandary, CFA & Jay Wilson Jr., CFA, ASA, CBA