When acquisition entrepreneurs first start their journey, they often hear whispers about "family offices" as this mysterious source of capital that serious buyers should tap into, but every time they try to research them, they hit a wall of confusion.

What exactly are family offices? How do they work? And most importantly - how can acquisition entrepreneurs actually work with them?

During the 2025 Business Acquisition Virtual Summit, we sat down with Ron Diamond, a family office expert who's worked both inside these organizations and as an advisor to them. What he shared completely changes how savvy buyers think about raising capital for acquisitions…

Let's break down what you need to know:

Here's the simple truth: A family office is the professional management structure that wealthy families create to handle their financial affairs.

Think of it this way - when a family accumulates serious wealth (typically $100 million or more), managing that money becomes a full-time job. They need people to handle investments, tax planning, estate planning, philanthropy, and a dozen other financial complexities.

That's a family office.

There are 2 main types:

Single Family Offices serve one wealthy family. They're completely private, entirely focused on that family's needs, and can be as small as 2-3 people or as large as 50+ professionals depending on the family's complexity and wealth.

Multi-Family Offices serve multiple wealthy families, typically pooling resources to access better investment opportunities and share operational costs. Think of them as boutique wealth management firms, but for the ultra-wealthy.

The key insight? These aren't just investment funds. They're comprehensive wealth management operations that happen to make investments - including in businesses and acquisition deals.

Ron shared some statistics that might surprise you:

There are roughly 10,000 family offices globally, with about 3,000-4,000 in the United States alone. That's 3,000-4,000 potential sources of acquisition capital, and most acquisition entrepreneurs have never even contacted one.

Even more interesting - about 50-60% of family office assets are invested in alternatives, including private equity, real estate, and direct business investments. This isn't money sitting in stocks and bonds. It's capital actively looking for opportunities like business acquisitions.

But here's the catch: Family offices are incredibly private. They don't advertise. They don't have big websites explaining what they do. Many don't even want their existence widely known.

This creates both a challenge and an opportunity.

Understanding what family offices want is crucial to successfully working with them.

Unlike traditional private equity firms obsessed with quick exits, family offices typically have a long-term investment horizon. They're not trying to flip businesses in 3-5 years. Many are thinking in decades, even generations.

This aligns perfectly with acquisition entrepreneurs who want to build and grow businesses over time rather than execute quick flips.

Family offices also value relationship-driven deals. They'd rather invest with people they know and trust than chase the highest potential return with strangers. If you can get an introduction through the right person, you're already 80% of the way to having a serious conversation.

Ron emphasized another key point: Family offices often have specific areas of interest or expertise based on how the family made their money originally. If they built wealth in manufacturing, they'll be more interested in manufacturing acquisitions. If they came from real estate, they'll gravitate toward real estate-adjacent businesses.

The job is to find the family offices whose interests align with your acquisition focus.

Start with your existing network. CPAs, attorneys, and wealth managers who serve high-net-worth clients often know which families have formal family offices. These professional advisors can make warm introductions that immediately establish credibility.

Attend the right events. Family office conferences exist, but they're typically invitation-only or expensive. The better approach? Go to industry conferences in your target sector where family office investment professionals might be scouting opportunities. You're more likely to have substantive conversations about specific deals than generic pitches about capital.

Leverage industry associations. Organizations like the Family Office Association exist to connect family offices with each other and with investment opportunities. Getting on their radar through speaking engagements or sponsored content can open doors.

Focus on quality over quantity. Ron was clear about this - trying to blast your deal deck to 100 family offices rarely works. Instead, identify 5-10 that align with your strategy, research them thoroughly, and pursue thoughtful, personalized outreach.

One more critical point: Never cold pitch family offices on LinkedIn or email. These are private, relationship-driven organizations. Cold outreach not only doesn't work - it can actively damage your reputation if you come across as someone who doesn't understand how this world operates.

If you do get a conversation with a family office, here's what they'll be evaluating:

Your track record matters enormously. Unlike venture capital that might bet on first-time founders with big ideas, family offices prefer to back people who have actually built and run businesses before. If you haven't done an acquisition yet, partnering with someone who has can significantly improve your chances.

Deal size varies widely. Some family offices only look at investments of $50 million or more. Others are happy to write $5 million checks for the right opportunity with the right person. Don't assume you're too small - but do your research on what size deals they typically pursue.

Alignment on exit timeline is crucial. Be upfront about your plans. If you want to build and hold a business for 10-20 years, that might be perfect for some family offices and a complete mismatch for others. Clarity prevents wasted time on both sides.

They value operational expertise. Family offices don't just provide capital - many can provide strategic guidance, industry connections, and operational support. If you can articulate how you'll use not just their money but their expertise, you become more attractive.

Here’s something Ron emphasized bluntly - Working with family offices isn't easy, especially for first-time acquisition entrepreneurs.

These organizations:

You might spend months building a relationship before ever discussing a specific deal. And even then, getting to "yes" can take considerable time.

But here's why it's worth it: Once you establish a relationship with a family office and successfully execute one deal together, you've potentially found a long-term capital partner for your entire acquisition journey. They can fund not just your first deal but your second, third, and fourth acquisitions as you build a portfolio.

That kind of relationship is worth the upfront investment of time and effort.

Based on Ron's insights, here's what we recommend:

This week: Identify 3-5 CPAs or wealth managers in your network who work with high-net-worth families. Reach out to ask if they know of any families with formal family office structures who invest in your sector.

This month: Research family office conferences or industry events where family office investment professionals might attend. Put at least one on your calendar for the next 6-12 months.

This quarter: Develop a one-page overview of your acquisition strategy specifically tailored to family office investors. Focus on long-term value creation, your operational expertise, and how their capital and guidance will accelerate your success.

Family offices represent a largely untapped source of patient, relationship-driven capital for acquisition entrepreneurs. Most of your competition isn't even trying to access this funding source.

That's your opportunity.

Thanks for reading Acquiring & Exiting.