Seven Ways Family Offices are Different from Other Buyers of Lower Middle Market Companies
01/01/25 • 18 min
This article from Akoya Capital discusses seven key differences between family offices and other investors in lower middle-market companies. Family offices possess a longer-term investment horizon, often stemming from their unique family wealth creation experiences. Their internal structures are diverse and complex, reflecting varied family member goals and needs. Investment strategies vary widely, sometimes favoring industries connected to the family's original wealth and other times prioritizing diversification.
Active involvement in portfolio companies is common, alongside a desire to minimize fees. However, access to suitable deals can be challenging, often requiring leveraging networks and partnerships. Finally, co-investing with other entities is a common strategy to mitigate risk and gain expertise.
Dive into the full article here:
https://akoyacapital.com/articles/seven-ways-family-offices-are-different-from-other-buyers-of-lower-middle-market-companies/
DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.
Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.
For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.
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Show Credits
Intro Music Artist: DJ Freedem | Track: Pretty Boy
This article from Akoya Capital discusses seven key differences between family offices and other investors in lower middle-market companies. Family offices possess a longer-term investment horizon, often stemming from their unique family wealth creation experiences. Their internal structures are diverse and complex, reflecting varied family member goals and needs. Investment strategies vary widely, sometimes favoring industries connected to the family's original wealth and other times prioritizing diversification.
Active involvement in portfolio companies is common, alongside a desire to minimize fees. However, access to suitable deals can be challenging, often requiring leveraging networks and partnerships. Finally, co-investing with other entities is a common strategy to mitigate risk and gain expertise.
Dive into the full article here:
https://akoyacapital.com/articles/seven-ways-family-offices-are-different-from-other-buyers-of-lower-middle-market-companies/
DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.
Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.
For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.
Learn More About BizNexus
Schedule a Demo: https://www.biznexus.com/demo
Access our marketplace: https://www.biznexus.com/marketplace-home
Access our community: https://community.biznexus.com/
Learn more about OmniSourceTM: https://omnisource.ai/
Follow us on LinkedIn: https://www.linkedin.com/company/biznexus
Get an acquisition loan: https://biznexus.tech/acquisition-financing
Show Credits
Intro Music Artist: DJ Freedem | Track: Pretty Boy
Previous Episode
Strategies for the Family Office Contemplating Direct Investments
This McGuireWoods article advises single-family offices (SFOs) considering direct private equity-style investments. It emphasizes five key strategies: partnering with experienced independent sponsors to access deal flow; prioritizing deal sourcing and adhering to investment criteria; considering co-investing with experienced partners to learn and mitigate risk; leveraging existing industry knowledge; and hiring expert advisors across various fields for due diligence and beyond.
The article highlights the challenges and complexities of direct investing for SFOs and offers practical solutions to navigate these hurdles successfully. It features advice from several industry professionals.
Explore that full report here:
https://www.mcguirewoods.com/client-resources/alerts/2019/8/strategies-family-office-contemplating-direct-investments/
DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.
Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.
For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.
Learn More About BizNexus
Schedule a Demo: https://www.biznexus.com/demo
Access our marketplace: https://www.biznexus.com/marketplace-home
Access our community: https://community.biznexus.com/
Learn more about OmniSourceTM: https://omnisource.ai/
Follow us on LinkedIn: https://www.linkedin.com/company/biznexus
Get an acquisition loan: https://biznexus.tech/acquisition-financing
Show Credits
Intro Music Artist: DJ Freedem | Track: Pretty Boy
Next Episode
The Unseen Impact: How the Great Wealth Transfer Will Shape Lower-Middle Market M&A
The RedlineDCS article discusses the "Great Wealth Transfer," the massive inheritance of $84.4 trillion from Baby Boomers to younger generations over the next two decades. This transfer will significantly impact the lower-middle market mergers and acquisitions (M&A) sector, leading to increased M&A activity as Baby Boomers sell their small and medium-sized businesses (SMBs).
The article highlights the need for robust succession planning within SMBs and explores the investment opportunities this wealth transfer creates. Ultimately, this generational shift in wealth is predicted to stimulate economic growth and reshape the business landscape.
Explore that full report here:
https://www.redlinedcs.com/post/the-unseen-impact-how-the-great-wealth-transfer-will-shape-lower-middle-market-m-a
DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.
Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.
For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.
Learn More About BizNexus
Schedule a Demo: https://www.biznexus.com/demo
Access our marketplace: https://www.biznexus.com/marketplace-home
Access our community: https://community.biznexus.com/
Learn more about OmniSourceTM: https://omnisource.ai/
Follow us on LinkedIn: https://www.linkedin.com/company/biznexus
Get an acquisition loan: https://biznexus.tech/acquisition-financing
Show Credits
Intro Music Artist: DJ Freedem | Track: Pretty Boy
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