Family Offices and M&A: A Growing Force in Strategic Investment

Whilst the M&A market in the UK has generally been quieter than anticipated in the first half of 2025, with investors taking a cautious approach due to volatile financial markets, US tariffs and high inflation, family offices are increasingly stepping into the spotlight as influential players in the M&A landscape. 

Once known primarily for their conservative wealth preservation strategies, family offices are now embracing M&A as a vehicle for growth, diversification, and long-term value creation. 

Why the shift towards M&A?

Several key drivers are fuelling this trend including:

1. Direct Investment and Control
   Family offices are moving away from traditional fund-based investments in favour of direct ownership. This allows them to exert greater control over their investments, align with long-term family goals, and avoid the fees associated with external fund managers.
2. Performance and Cost Efficiency
   With concerns around the performance of hedge funds and associated costs, family offices are turning to M&A as a more transparent and potentially higher-yielding alternative. 
3. Strategic Growth and Succession Planning
   M&A is being used as a tool for both strategic expansion and generational transition. Family-owned businesses are increasingly partnering with family offices for their sector-specific expertise and long-term investment outlook.
4. Realistic Valuations and Market Opportunity
   In the current economic climate, many family offices perceive valuations to be more grounded, making acquisitions more attractive.  This is particularly relevant in sectors where family offices already have operational experience or legacy interests. 
5. Impact Investing and Purpose-Driven Capital
   Family offices are using M&A to advance ESG and philanthropic goals, with growing interest in sectors such as renewable energy, sustainable agriculture, and healthcare.

Why are Family Offices ideal M&A partners?

Family offices bring a unique value proposition to M&A:

• Patient Capital: Without the pressure of fixed fund lifecycles, family offices can offer long-term capital, which is particularly appealing to businesses seeking stability and sustainable growth.
• Aligned Philosophies: Their focus on legacy, stewardship, and value creation often resonates with family-owned businesses considering a sale or partnership.
• Sector Expertise: Family offices can invest in industries where they have deep operational knowledge, enabling them to add strategic value post-acquisition. 

Emerging trends

• Club Deals: Co-investment among family offices is on the rise, allowing them to pool resources and share risk while accessing larger or more complex deals. According to PwC’s Global Family Office Deals Study 2024, club deals accounted for 60% of family office investments by volume.
• Sector Focus: M&A activity is often concentrated in sectors tied to the family’s original wealth creation or which align with their particular values.
• Growing Sophistication: As they become more active in M&A, family offices are building in-house teams and adopting institutional-grade processes to manage transactions more effectively.

The increasing involvement of family offices in M&A is reshaping the investment landscape. Their ability to offer flexible, long-term capital combined with a values-driven approach makes them attractive partners in a wide range of transactions. As this trend continues, we expect family offices to play an even more prominent role in shaping the future of global M&A.

At Burges Salmon, we support family offices across the full spectrum of their legal needs. Our cross-firm Private Wealth team has extensive experience advising on M&A and investment activity at every stage - from structuring and due diligence through to execution, integration, and ongoing governance. Whether advising on a first-time acquisition or a complex portfolio transaction, we provide commercially focused advice tailored to the long-term goals and values that drive family office investment strategies.

Written by Gina Green and Julie Book