In most cases, families that own businesses don’t just own the family business. They also have additional assets, such as real estate and liquid assets. With most family businesses, it’s not just about a single asset, it’s about multiple assets. Indeed, in most cases, it’s about multiple family members, often with divergent interests, controlling multiple assets.
Not all families with considerable wealth think that a family office makes sense. When there is still an operational business, families often think that dividends and profits from the business are the best way to preserve wealth. That may make sense for some truly entrepreneurial families, but I think there are a number of reasons why a family office might still make sense even for them.