My New Book – Unlocking Private Company Wealth
Chris Mercer’s newest book, Unlocking Private Company Wealth, is announced in this post! Read all about the book here.
What is the “Middle Market” of Companies and What Do They Have in Common?
Use of a term like “middle market” to categorize companies may be helpful to writers in national publications. They are looking at ways to describe the world, as are companies who do business with other companies. However, in reality, few business owners think of their companies as “middle market” businesses. What we know about middle market and larger companies is that each one is defined by its business and markets. We also know that one thing they have in common is that all of them need to work on things like I write about in Unlocking Private Company Wealth that have nothing to do with the particular business they are in, including complex ownership, a need for workable buy-sell agreements, management transition planning and execution, ownership transition planning and execution, and management of private company wealth.
Upcoming Webinar on Unlocking Private Company Wealth
On Tuesday, November 18, 2014, Chris Mercer will conduct a 100-minute webinar on the topic of “Unlocking Private Company Wealth: A Tutorial for Business Advisers.” The webinar is being sponsored by Valuation Products and Services and begins at 12:00pm (Central). For more information on the content of the webinar, view the video from Chris. There is also a link to register.
Hidden Pricing Is Not Good for Business: A True Story
On a recent business trip, I encountered a hidden up-charge on my restaurant bill. Here’s the story as well as the moral of the story.
Unlocking Private Company Wealth
The following appeared in a recent issue of the BV Wire from Business Valuation Resources. New resource for BV experts in an advisory role BV experts can act as advisors to help business owners understand value and help them see how they can tap into that value. A new book, Unlocking Private Company Wealth, by […]
What Happened to Google and What Does It Mean For Your Private Business?
On October 16, 2014, after the close of the market, Google announced that its earnings per share (EPS) were $6.35 per share versus “analysts’ expectations” of $6.53 per share. Revenue totaled $16.52 billion versus “expectations” of $16.57 billion. The shortfalls were 2.7% and 0.3%, respectively. More troubling, Google reported a slowdown in the total number […]
What Happened to Netflix and What Does It Mean For Your Private Business?
What does the recent announcement by Netflix, indicating that subscriber growth was lower than expectations for the third quarter of 2014 and the resulting devastation of market value have to say to owners and managers of closely held and family businesses?
New Book: The Visible Expert
Do you know what a Visible Expert is? Do you want to become one? A new book by Lee Fredericksen and two colleagues at Hinge Marketing provides insight into personal and firm growth in the various professionals services fields. There’s a little surprise in this post.
One Businessman’s Ownership Transition “Plan”
The father owns 100% of a privately held business. His son works in the business. There is life insurance on the father’s life. He believes he has a good transition plan but it’s really a hope and a prayer that things will work out. Read how things can work out with a little planning.
Capital Structure and Dividend Policy Matter for Private Companies
Corporate finance can be confusing if you are a private company. Much of what we think about comes, directly or indirectly, from corporate finance ideas and concepts developed around the public markets. This post looks at what is called the Modigliani-Miller theorem, makes a few observations, and then, attempts to relate them to closely held and family businesses, i.e., the private company world. We cannot blindly assume that all of the assumptions of the M-M theorem hold in the real world of private company finance. Capital structure influences the level of shareholder returns to equity over time. Dividend policy determines the current returns to owners over time. The combination of a reasonable capital structure, a reasonable dividend policy, and paying attention to the needs of various owners make real differences in the long-term success of many private companies.