A recent article published on themiddlemarket.com was extremely informative as it pointed out the strong competition for deals in the M&A market today. And it reinforced the tremendous growth in the role that Family Offices (both single-family offices and multi-family offices) are playing in the M&A landscape today. You can read the entire article here:
For owners of privately held businesses, the current seller’s market is stronger than we have seen in years and one of the most active groups are Family Offices. For those of you unfamiliar with the role Family Offices are playing in M&A, we recently published an Insight post that you may enjoy reading as well:
Some of the salient points from the middlemarket.com article regarding Family Offices include:
The competition for high-quality deals is more intense than ever, leaving many buyers to think outside the box for ways to win dealflow. The competitive environment is forcing family offices, like Pritzker Private Capital and Sam Zell’s Equity Group Investments, and independent sponsors, like the Grantchester Group and Rotunda Capital Partners, to look for new ways to participate.
By definition, family offices and independent sponsors fall outside the mainstream of traditional private equity firms. Originally, family offices were established by wealthy families to invest in private equity firms. Over time, many family offices began investing directly in companies themselves.
“During the last 12 months, we have gone from an economy that was shutting down to one that is rapidly ramping up again, with a flood of new capital all driving record-high valuations,” says Paul Carbone, president and managing partner of Pritzker Private Capital (PPC), a Chicago-based family investment firm. “We have seen both ends of the spectrum in a very short period of time. Family direct investing will continue to evolve, and alternative strategies throughout the M&A industry will continue to proliferate and become more important as the industry matures and investors adapt to meet the demands of a highly competitive marketplace.”
According to themiddlemarket.com, there are now over 3K U.S. based Family Offices with assets under management of $1-1.2 trillion. In addition, there are approximately 150 multi-family offices with $400-$450 billion under management. So these are key players in the M&A landscape today.
Buyers that you should be very aware of if you are marketing your business.
However, the challenge you face if you are not using professional M&A advice, is two-fold:
Historically, most Family Offices operated under the radar screen, avoiding the limelight for confidentiality reasons. Although this has changed dramatically over the past five years, finding the appropriate Family Office for your investment opportunity can still be a challenge (unless you have a buyer database of over 34K like Generational Equity which is comprised of quite a few Family Offices). Finding the right buyers to approach has always been the art of deal making.
Secondly, if you do find a good list of Family Offices to approach, your next challenge is even greater: Creating documentation that attracts them to your opportunity, created in such a way that the Offering Memorandum you send has key information in it that they need to see to get the investment committee of the Family Office to request more information from you.
Fortunately, there is an answer for both of these dilemmas: Hiring a professional investment banking firm to represent you in finding all buyer types.
An investment of capital in a firm like Generational likely will pay off handsomely down the road as we have access to key data on Family Offices (and a myriad of other buyer types) that can benefit you. Don’t just take my word for it, click on the following links to learn more:
If this Insight post has intrigued you to learn more about Family Offices, please reach out to us at 972-232-1121 so we can provide you with more research on this key buying group in today’s market. And special thanks to our friends with themiddlemarket.com for so clearly outlining how vital this group of buyers is today.
Carl Doerksen is the Director of Corporate Development at Generational Equity.
© 2021 Generational Equity, LLC All Rights Reserved
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Group’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Group to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Group is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.