Family offices are emerging as key partners in a surge of global M&A activity involving family-owned businesses, according to a new KPMG report. Around 500 transactions were recorded over the past year—many backed by private equity—with family businesses increasingly tapping family offices for capital and sector expertise.
The report highlights a growing appetite among family businesses to pursue acquisitions to fuel growth, diversify holdings, or facilitate generational transitions. Their interest in family offices stems from the appeal of long-term, patient capital and aligned investment philosophies.
“It’s about more than survival—it’s about building lasting success across generations,” said Robyn Langsford, Global Head of Family Business at KPMG Enterprise.
Key findings from the survey of nearly 2,700 family businesses worldwide (including in Australia) include:
- Roughly 60% of M&A targets were other family businesses or family offices, suggesting a trend toward like-minded collaborations.
- Half of respondents prioritise non-organic growth—including M&A—over the next three years, coinciding with an ongoing generational wealth shift.
- In Australia alone, $1.1 trillion is expected to change hands over the next five years, growing to $2.6 trillion by 2040, with about 70% of local businesses still family-owned.
Private equity is also playing a larger role, offering capital and operational support—especially in deals that are off-market or require pooled resources. These partnerships are viewed as key to unlocking long-term value in a historically resilient sector.
Examples of this trend include:
- The Gandel family’s Prism Venture, focused on retail and property investments.
- Tattarang, the Forrest family’s investment arm, joining forces with the Besen and Myer families in areas like agribusiness and renewables.
- The Soul Patts-Brickworks merger, showcasing how a public company can resemble a family office structure in terms of governance and vision.
However, not all deals have gone smoothly. High-profile failures like the GFG Alliance’s acquisition of Whyalla steelworks highlight the risks of poor execution.
The generational shift is also influencing deal strategy. Younger family members often favour innovation and new sectors over legacy operations, and they are typically more open to co-investment and modern governance models. Yet this can create internal tension over strategy and philanthropic direction.
The report found that 70% of successful family businesses have formal boards, helping improve decision-making, communication, and intergenerational engagement.
To stay competitive, Langsford advises that family businesses strengthen relationships with both private equity firms and other family offices, gaining access to capital, strategic partnerships, and succession planning support.
