In total, we published 37 blog posts in 2022. While we received positive feedback throughout the year, a few posts were particularly popular with our readers.
Here are the top five posts from the Center for Private Company Excellence blog in 2022:
1. LIBOR is Finally Going Away. Here’s What You Need to Know
For the past four decades the London Interbank Offered Rate (LIBOR) has been the standard used by lenders for setting interest rates on mortgages and corporate debt. However, in 2017, financial authorities announced a phaseout of the use of LIBOR. Given the reliance on LIBOR as a benchmark for interest rates on loans, it is important that borrowers understand the implications of this transition.
2. 4 Common Pricing Pitfalls and How to Avoid Them
I visited a client last summer and when I pulled up to their facility there were signs along their street indicating that they were hiring, which is not uncommon in today’s environment. The signs listed positions available and hourly rates.
I made another trip to this client in the beginning of the New Year and those same signs remained, only this time when I looked at the hourly wages, they had gone up approximately 40 percent. During my visit, I asked the owner if he had reviewed his pricing model and how these increased wages affected it. As the conversation progressed, he realized he had not given enough attention to his pricing strategy amidst all the changes to labor and material costs.
As the conversation continued, I began to realize his business was experiencing a few common pricing missteps we see quite often.
Here are four common pricing pitfalls and considerations to avoid them.
3. What High Inflation Means for the Value of Your Business
Throughout 2021 and 2022, inflation has ramped up significantly. In June 2022, the Consumer Price Index (CPI) was up 9.1 percent from June 2021, representing the largest twelve-month increase in the CPI since 1981. As inflation takes hold and fiscal and monetary responses have attempted to slow it down, it brings up the question of how it impacts business value.
4. M&A Trending Multiples as We Enter the Second Half of 2022
The M&A environment has been very active over the past 18 months, which can be attributed to the significant surge in the housing market and the increasing number of business owners looking to retire. With the increase in M&A activity, there are plenty of success stories in which sellers are getting very high multiples for their business. However, this is not always the case. The M&A environment has resulted in increased valuations, but they may not always be as “hot” as you might hear.
5. SECURE 2.0 Provides More Retirement Opportunities and Flexibility
The Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in late 2019, greatly expanded retirement tax benefits to companies and their employees. The Securing a Strong Retirement Act, or SECURE Act 2.0, looks to build upon the 2019 Act and provide further retirement opportunities to employers and employees. The legislation has significant bipartisan support and has the momentum to pass this year.
Here are some key provisions of SECURE Act 2.0.
Are there any topics you'd like to see featured in upcoming blog posts? Share in the comments.