Largest Family-Owned Businesses Use Single-Family Offices over Multi-Family Offices, FEUSA Survey Finds

Aug 28, 2024 | Family Businesses, Family Business Survey, Family Enterprise USA, Generationally Owned Business

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Largest Family-Owned Businesses Use Single-Family Offices over Multi-Family Offices, Family Enterprise USA Survey Finds

 
 

Accounting, Administrative, Household Services Rank as Highest Needs

 

 
America’s largest and most successful family businesses prefer to use single family office firms rather than multi-family offices, according to research by Family Enterprise USA.
 
In a survey of nearly 800 family businesses across the country, the results found 33% of family-run enterprises employ some type of family office firm to help with a variety of tasks, from accounting to household expenses to investments.
 
The survey, The Annual Family Business Survey 2024, was conduct in early 2024 by Family Enterprise USA and reached 789 family business in 40 states.
 
The survey found outside business management firms were either single family offices (FO’s), multi-family offices (MFO’s), or a hybrid of the two.
 
Of those 33% of family businesses that use family offices, 79% said they employed single family offices, while only 15% said they used a multi-family office. The survey results also found another 6% used family offices that were a hybrid of the two.
 
Family businesses are the largest private employers in the country, accounting for 83.3 million jobs, or 59 percent of the country’s private workforce, according to research. America’s family-owned businesses contribute $7.7 trillion annually to the U.S. gross domestic product.
 
“Understanding the advantages and disadvantages of a family office structure is the first issue family business leaders and successful individuals need to understand before they hire a family office to manage their affairs,” said Pat Soldano, President, Policy and Taxation Group, advocates of family offices, family businesses, and successful individuals.
 
Soldano has been in the family office industry for 30 years. She is also President of Family Enterprise USA, advocates for family businesses, and developers of the annual survey.
 
The survey also found when it came to family office services, those family business employing family offices, 57% said their greatest need was bookkeeping, administrative work, accounting, and bill paying.
 
The next specific need was help with investments, with 15% saying that was a key service, while 6% needed help with tax services from their family office.
 
Another 21% said they needed help with household support and “other” needs.
 
“When it comes to family offices, the survey shows there is still a basic need for accounting, administrative, and household services, while investment and tax advice are not as critical as they once were,” said Soldano. “What’s becoming clear is the next generation of leaders are looking at family office services very differently,” she said. “This will change the family office industry dramatically.”
 
To see and Executive Summary of the full research report go to: https://familyenterpriseusa.com/family-business-survey/

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