Acquisitions involve high levels of uncertainty because resources are committed to risky acquisition activities even before the actual performance outcomes of these investments are known. In this study we examine the likelihood of using minority acquisitions as a risk reducing mechanism by family firms. Based on an analysis of a panel dataset of S&P 500 firms, we find that the acquisition decisions of family firms are consistent with the real options theory. We observe that family firms engage in related minority acquisitions because of their limited downside risk on socioemotional wealth.