Insights
Exploring The Advantages Of Family Offices For Sellers
August 4, 2023
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: [email protected]
Americas: Sam Smoot at +1 (813) 898 2350 / [email protected]
Europe: Michael Lawrie at +44 (0) 161 359 4400 / [email protected]
Africa: Anthony McCardle at +27 21 300 2055 / [email protected]
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.
Website: http://www.benchmarkintl.com
Blog: http://blog.benchmarkcorporate.com
Share This Post
Categories
Get These Insights Delivered Directly To Your Email
Explore our curated collection today and stay ahead of the curve in M&A.
Related Posts
Seller Motivation – What Goes Into The Decision To Sell?Are you considering selling your business? Deciding when and why to sell is one of the most significant decisions you’ll ever make as a business owner. While maximizing financial proceeds is often at the forefront of these decisions, it’s essential to recognize that it’s not the only factor. Life circumstances, time with family, and other qualitative considerations can often outweigh financial gain. To help you navigate this complex process, we invite you to join our upcoming webinar: Seller Motivation: What Goes Into The Decision To Sell?Why You Should Consider Rolling Equity When Selling Your BusinessSelling a business often culminates years of hard work, dedication, and strategic planning. It marks a significant financial milestone, but how you structure the sale can have lasting implications on your financial health and future opportunities. One option that business owners frequently contemplate is maintaining a portion of equity in the business as part of the sale. This approach involves taking a portion of the sale proceeds in the form of equity in the acquiring company rather than all cash upfront. While it may not be ideal for every situation or seller, there are many reasons why rolling over equity should be carefully considered: