Family Dynasties: A Growing Force in M&A
Michael Foster’s recent article for Family Capital highlights the growing influence of family dynasties in mergers and acquisitions (M&A), featuring insights from Wingspan’s Christina Wing. Family-owned businesses are increasingly leveraging their patient capital and values-driven strategies to shape the global M&A landscape.
Wing discusses the pivotal role family offices play in this space. “The dramatic growth in the number of family offices globally, combined with their increasing preference for direct investment, points to a natural surge in M&A,” she explains. She projects that family offices will drive a substantial portion of deal flow in the years ahead, as the sector grows to an estimated $15 trillion by 2030.
The article explores broader trends, including a generational shift in family leadership, with younger members embracing innovation and collaboration in their approaches to deal-making. This evolution reflects the adaptability and forward-thinking mindset that many family enterprises bring to their investment strategies.
Foster highlights real-world examples, such as the Nordstrom family taking their department store private for $6.25 billion and the Viessmann family partnering with EQT to acquire software provider AMCS. These deals demonstrate how family enterprises are seizing opportunities to invest directly in businesses that align with their long-term visions.
Wing notes that family offices often appeal to sellers because of their flexibility, willingness to take a long-term view, and readiness to accept realistic margins. Foster also observes that family offices are thriving in an environment where private equity activity has slowed, and listed companies face regulatory constraints.
Foster’s article paints a compelling picture of how family dynasties are shaping the future of M&A. To read the full piece, click below.
