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That’s not what a family office is. That is a family-owned business. See the link in the sibling comment. Also, it’s possible to determine a value for any comp
by quickthrowman 6y ago
That’s not what a family office is. That is a family-owned business. See the link in the sibling comment.
Also, it’s possible to determine a value for any company.. not sure why you think it isn’t? Net profit/compensation to owner multiplied by a multiple determined by what industry/sector it is in is how small business valuation is done, plus/minus assets/liabilities.
- bretpiatt 6y agoThere's a reason I put family office in "quotes", your view may be the Wikipedia definition of family office with $100M+ of investment assets, that isn't the view of many "family offices" out there and not matching Wikipedia doesn't make them wrong. Second issue on valuation, logically you're totally correct. In a jointly owned family business logic and Excel aren't the only way the business gets evaluated. Depending on the structure a sale may even be blocked by a minority owner member so all parties have to agree it is a fair sale price to sell. If this "family business" has built up $5-10M in investment assets and the operating business runs at a break even while the investments generate $1-3M a year in gains is it a small "family office" or a struggling family business with an excellent treasury team managing the investment assets?