For family business owners and executives, business value can often be found in places not immediately visible on a balance sheet. Factors like brand reputation, customer loyalty, and unique market positioning are important drivers of growth and long-term success. And in some cases, they can even surpass the impact of physical assets.
I recently sat down with fellow family business advisor Travis Coley, Managing Director at WhitePenny, a brand and web development firm. We explored the critical connection between financial health and intangible assets as well as practical ways family businesses can unlock new opportunities and strengthen their legacy.
Steve: Travis, tell me why you’ve become so passionate about the topic of intangible value in family businesses.
Travis: I've positioned companies and structured deals for two decades and sat across the table from hundreds of family businesses and CFOs. Most excel at financial optimization, and I learn from them every time we work together. But I've discovered something fascinating: we often see significant gaps between how family business owners and CFOs value their companies internally and how the market values them externally. That gap usually connects to intangible assets - particularly brand equity. This creates an opportunity hiding in plain sight.
Steve: That’s a great observation and something we see quite often as well. Many business owners get so focused on executing the day-to-day with an emphasis on just top-line growth that they miss out on other value-added activities for their business. There are often some low hanging fruit opportunities with risk management that are not addressed. These risks show up in the form of customer concentrations, lack of patents or non-solicitation agreements, and strength of management, to name a few. Anything else you’ve noticed with intangibles?
Travis: Today, intangible assets represent 84% of S&P 500 enterprise value, up from 17% in 1975. This extends far beyond tech companies. We consistently see companies with strong brand positioning outperform weaker competitors by significant margins when they pursue capital or seek an acquisition. Research shows strong brands command prices up to twice those of weaker competitors. A portfolio of the world's top 40 brands has beaten traditional benchmarks like the S&P 500 every single year since 2000.
Steve: What are the things that you see contribute to stronger brands?
Travis: Acquirers buy predictable cash flows, pricing power, and competitive positioning. Brand equity drives all three. CFOs already understand intangible asset value in theory. You know customer relationships matter. You recognize reputation drives pricing power. You track how talent retention impacts profitability.
Steve: Another great point, Travis. When companies are looking to make acquisitions, recurring cash flows and greater business predictability reduce risk and have a direct correlation with an increase on how much an acquirer is willing to pay. A healthy exercise we like to do with our clients that are entertaining an exit of their equity interests is to ask them to put themselves in the shoes of a buyer and think about what would be important to them if they were on the other side.
How do you suggest family businesses capitalize on their brand?
Travis: The opportunity lives in systematic execution. We measure brand equity using frameworks CFOs already understand:
- Customer Lifetime Value: How brand investment impacts retention and expansion revenue
- Pricing Realization: Your premium relative to commodity alternatives
- Talent Efficiency: ROI on reduced recruiting costs and higher retention
- Partnership Acceleration: How brand strength impacts strategic relationships
These business performance indicators flow directly to enterprise value.
Steve: What do you do to help family businesses get the most out of their brand?
Travis: We treat brand investment like any capital allocation decision. We start with clear business objectives, establish measurable outcomes, and track ROI over time. Investment levels typically run 1-3% of revenue, but the enterprise value impact can be substantial. Companies like True Search, Xerimis and Severino Pasta, which we've partnered with for over a decade, create value that compounds over time.
Steve: Capital allocation is really such an important part of running a business, particularly when you are privately-held and family-owned and the capital is limited. There are many choices about what you can be doing with your profits each year and it is easy to get over zealous about what you want to do each year.
We’ve found it helpful to guide our family business owners to understand the trade-offs they are making and help prioritize their initiatives. When a family business is in growth mode, managing the tax burden, reinvesting the working capital, and managing their debt become so critical in executing their strategy. As the business matures, there are often more opportunities for a liquid return to shareholders and planning for shareholder succession. Trying to do all those things at the same time can put too much stress on the business and the owners themselves.
Is there anything else family businesses should be thinking about?
Travis: Family businesses and CFOs bring financial rigor that traditional brand conversations often miss. You ask hard questions about ROI, measurement, and business impact. When financial discipline combines with strategic brand thinking, companies create sustainable competitive advantages that show up in valuations. Our most successful engagements start with: "How do we build measurable enterprise value through strategic positioning?" We then identify brand investments that drive the business outcomes you need - whether repositioning for premium pricing, digital transformation for new markets, or helping family businesses tell their story more effectively.
Steve: Travis, thank you for your time and the opportunity to speak with you. There are so many synergies with how we approach helping our family business clients.
Discover How Strategic Branding Can Build Your Family Business’s Long-Term Value
If you're thinking about enterprise value for growth, succession, or eventual exit, let's have a conversation about how strategic brand investment can help build sustainable competitive advantage that creates long-term stakeholder value.
Steve Staugaitis serves as the Director-in-Charge of Kreischer Miller’s Family Business practice, where he helps family business leaders analyze and understand their financial position, assists with evaluating acquisition opportunities, evaluates and structures transition plans, completes business valuations, and provides insight into company buy-sell agreements. Contact Steve at Email.
Travis Coley serves as Managing Director at Whitepenny, where he helps business leaders integrate brand strategy into their growth and value creation plans. He draws on two decades of M&A and corporate finance experience to partner with CEOs and CFOs, building strategic positioning that drives measurable business outcomes. Contact Travis at Email.