Selling Your Company to a Private Equity Firm vs. a Family Office

About the Episode

When selling a mid-market business, you may run into a family office interested in acquiring your company. But what are family offices, how do they work, and what do they look for in a target? In this episode with James Carey, a partner at a private family office, we discuss the differences between a family office, private equity firms, and strategic acquirers, look at how family offices create value, and define growth equity. We also talk about the elements of the family office capital growth toolkit, mistakes an owner may make in consultations with growth equity investors, and tips to avoid these mistakes.

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In this Episode

2:00 What is a family office, and what role do they play in buying companies in the middle market?
4:34 What is the difference between a private equity firm and a family office?
11:47 What should a business owner who is selling their company know about growth equity?
17:26 What do family offices and private equity firms look for in an acquisition?
23:34 How involved are most private equity firms in the operations of the companies they acquire?
32:13 How do family offices grow the companies they acquire?
37:36 How do private equity firms increase the value of the companies they acquire?
38:45 How has the role of family offices in the M&A world changed over the past few years?
46:41 In terms of exit paths, what is the preferred exit route for a growth equity investor?
54:03 How do private equity firms and strategic buyers typically structure their acquisitions?
57:28 What mistakes do business owners commonly make when meeting with investors?
59:24 How will the role of family offices change in the future in the M&A world?

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Resources Mentioned

Meet Our Guest

James Carey

James Carey

Partner at Next Sparc Growth Partners

James Carey is a Partner at Next Sparc Growth Partners; a professional family office that makes direct investments in rapidly growing founder-led and family-owned businesses. and leads the Business Development efforts at the firm. Before joining Next Sparc, James was a Vice President and the Head of Business Development at Peterson Partners, a diversified private investment firm focused on growth equity and venture capital investments. Prior to joining Peterson Partners, James was a Director at H.I.G. Capital, a leading global private equity investment firm with over $50 billion of equity capital under management where he sat across the entire family of funds. Earlier in his career, James was an Associate at New River Capital Partners, an affiliate of Huizenga Holdings, where he was responsible for Corporate Development. James received a Bachelor of Science  in Business Administration from the University of Vermont in Burlington.

Location Location: Miami, Florida

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