Family offices is a private wealth management firm established by an ultra-high-net-worth family. They provide that family personalized services, including investment management, financial planning, estate and tax planning, and more.
By using their investment committee to find opportunities and manage a portfolio of companies, family offices invest in private companies that want to preserve capital than seek high returns.
Since typical private equity funds look to exit their investments within five years, family offices can appeal to sellers if they want to avoid seeing their company sold quickly. Family offices are run by owner-operators who want to maintain the current company's operations. They look at the long-term investment for the next generation and ensure their wealth grows for their family. As a result, they need a corporate board to answer to, allowing for more flexibility in the industries they can invest in.
Family offices provide business owners with a collaborative partner who shares their objectives and values. For sellers who prioritize their business's values over the highest price, family offices offer a viable option. By choosing a family office as their buyer, sellers can ensure that their business and employees are well taken care of even after the sale. This is in contrast to traditional private equity firms, which may have a fixed lifespan and force the owners to leave the business.
To conclude, this article has outlined several reasons why sellers should consider family office buyers. Family offices not only add value to the business while preserving its legacy, but they also offer flexible capital and fewer restrictions, which translates into more opportunities for growth.
Author
Mary Anne Dunham
Senior Deal Analyst
Benchmark International
T: +1 512 861 3303
E: mdunham@benchmarkintl.com
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
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Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL:
Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $10 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.
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