Whilst many investors will understandably hold back, a report by KPMG China expects family offices to increase transactional activities and seize opportunities created by the outbreak.

KPMG China underlined acquisition opportunities for family offices with strong cash flow, in a recent report, projecting increased M&A activity from the segment. It highlighted opportunities in healthcare, logistics, automation, virtual offices, entertainment, retail and education, though it also noted higher valuations in the coming period.

For such acquisitions, it recommended considering co-investment strategies, re-valuation strategies that focus on the coronavirus impact and value creation through M&A via mutual benefits of business synergy on top of the price tag. 

Earlier this week, PwC also released a report forecasting greater participation by family offices in APAC and EMEA acquiring «promising crypto companies», described the firm’s global crypto leader Henri Arslanian. The two regions collectively accounted for 51 percent of crypto fundraising and M&A deals last year.

Stressed Assets

In addition to growth opportunities, family offices could also consider investments in stressed assets where they could find below-market valuation opportunities. Constrained landlords, for example, could be seeking to offload assets at attractive prices to meet commitments in «a buyer’s market like the current one».

«Now is a good time for family office managers to start reviewing their portfolio and talking to their advisors to plan ahead for any buy-and-sell initiatives,» the report said. «We expect investors will likely act fast to seize opportunities in the current situation.»

Non-Investment Issues

Investment strategies aside, the report also highlighted the need to place emphasis on issues such as technology, cybersecurity, business continuity and recovery, philanthropy and family office structure for long-term sustainability. 

«The novel coronavirus (COVID-19) outbreak has disrupted businesses and markets around the world. In many ways family offices (FOs) are facing the same challenges as other businesses,» KPMG China added.

«Depending on the size and scope of an FO, there are different issues that need to be considered by its family members and executives.»