When an entrepreneur decides to sell their company, the choice of buyer is as crucial as the price. For SMEs, two of the most common counterparties are private equity funds and family offices. They are both investors, but with very different logics, objectives and management styles that directly affect the company’s future and the role of the entrepreneur.

Time horizon: short term or long term?

Private equity funds typically operate with a fixed-term logic. Their goal is to enhance the business, increase profitability and resell it within 4–7 years. This often translates into fast decisions, strong pressure on results and growth strategies designed to maximize value quickly.

Family offices, on the other hand, invest with a long-term perspective. Their aim is not a quick exit, but the preservation and gradual development of family wealth. This allows for planning with less pressure on timing and more focus on business continuity.

Governance: tight control or collaborative approach?

Private equity investors usually implement stricter governance structures. This may include new managers, external executives and rigorous reporting systems. The entrepreneur is often kept only for a limited transition phase, with reduced influence.

Family offices tend to favor a more collaborative approach. While they introduce governance tools, they allow greater continuity for existing management teams and show stronger sensitivity toward the company’s values and culture.

Industrial approach: fast growth or gradual consolidation?

Private equity pushes for accelerated growth. This often means restructuring, efficiency gains, entry into new markets and bolt-on acquisitions to scale quickly.

Family offices typically prefer gradual consolidation. Their focus is not just financial returns, but also industrial and cultural sustainability. Growth is pursued steadily, often preserving local roots and the company’s identity.

Price and deal structure

Private equity funds may propose attractive valuations but often tie them to strict conditions: earn-outs, performance milestones and exit clauses. Entrepreneurs must be ready for significant post-sale involvement.

Family offices tend to offer more stable pricing and simpler deal structures. Their interest is long-term value creation rather than resale within a few years, making them more flexible on reinvestments and ongoing partnerships.

Continuity and the entrepreneur’s role

With private equity, the founder’s presence is usually temporary and aimed at facilitating the handover. Over time, external management takes full control.

With family offices, entrepreneurs may continue as minority shareholders or advisors. This ensures smoother continuity, preserves company culture and supports a more gradual transition.

Family office or private equity: choosing the right partner for an SME

The decision depends on the entrepreneur’s goals:

• If the priority is to maximize value quickly, private equity may be the right fit.
• If the goal is long-term stability, continuity and preservation of company identity, a family office is often a more suitable choice.

For an SME, selling a business is not just about monetizing past efforts. It is also about deciding what kind of future the company will have. Knowing the differences between family offices and private equity is the first step toward making a truly informed choice.