M&A Glossary
Family office as a buyer of your company
A family office is a structure managing the wealth of one family or several families. Some invest directly in companies, alongside real estate and financial instruments. For an owner selling a business it is a buyer with a different profile from a fund: no time pressure and no predetermined exit date.
How it differs from a fund
Horizon
- fund: 3-7 years, exit planned
- family office: open-ended
- no pressure for rapid value growth
Decision
- fund: investment committee, process
- family office: the owner of the capital
- faster, but less predictable
What follows
- more freedom on structure
- less appetite for leverage
- often a focus on dividends rather than growth
In practice
In Poland the family office as an active buyer of companies is a phenomenon of the last decade, tied to the first generation of entrepreneurs exiting their businesses. Capital from those sales returns to the market and looks for companies similar to the ones that family already ran. That can be an advantage: the buyer understands the sector from experience rather than from a presentation.
A family office rarely advertises itself as a buyer. Reaching one takes a network, not a listing.
Frequently asked
Questions about family offices.
What exactly does a family office do?
It manages a family’s wealth: investments, real estate, succession and sometimes tax matters. Some also make direct investments in companies, and that is the role in which they appear in transactions.
What is the difference between a single and a multi family office?
The number of families served. A single family office serves one, where the wealth justifies it. A multi family office serves several and operates more like a specialist advisory firm.
Will a family office buy the whole company?
It varies. Some look for majority stakes and their own management, others prefer a minority alongside the existing owner. It is usually worth settling at the start of the conversation, because it shapes the entire structure.
See also
- M&A glossary - 72 terms used in transactions
- How we run a company sale
- How we work and how we charge