A new report from Deloitte Private reveals that more than a quarter of family-owned enterprises are either currently navigating a leadership transition or expect to face one within the next decade. However, fewer than half of those firms have fully developed succession plans, signaling a persistent gap that wealth advisors can help address.
The Family Business Insights Series report, based on a survey of 1,587 family businesses with annual revenues of at least $100 million across 35 countries, supplemented by 30 in-depth executive interviews, found that 27% of families and 40% of family businesses are either in the midst of a succession or anticipate one within 10 years. While 89% of families and 82% of family businesses report having some form of succession plan, only 50% of families and 46% of family businesses characterize those plans as broad and well-developed.
That disconnect between having a plan and having a robust one represents a significant opportunity for financial advisors, particularly those serving business-owner clients. The three biggest obstacles cited by respondents were a next generation perceived as underqualified or lacking experience (35%), difficulty identifying a suitable successor (33%), and current leaders reluctant to step back (32%). Confidence levels reflect this uncertainty: combined responses of highly unconfident, somewhat unconfident, and somewhat confident totaled 52% for current family leadership, 63% for next-generation leadership, and 57% for family business leadership overall.
One notable shift advisors should monitor is a growing openness to external leadership. The share of family businesses expecting to install a non-family chief executive after their next succession is projected to double, from 13% today to 26% post-succession. Deloitte Private frames this as part of a broader move toward professionalized governance and outside expertise, rather than a retreat from family control.
Dr. Rebecca Gooch, Deloitte Private global head of insights at Deloitte Global, said succession forces family enterprises to weigh legacy, governance, and future growth simultaneously. “Succession is one of the defining moments for family businesses because it requires balancing legacy, governance, and future growth at once,” she said. “Deloitte Private’s findings show that many family businesses understand the urgency of preparing the next generation for leadership roles, but the transition from informal planning to structured succession strategy remains a work in progress.”
Even as senior family members hold most top leadership and governance posts today, next-generation members are already carving out influence in specific functions, most notably technology (51%), philanthropy and community engagement (51%), sales and marketing (50%), and innovation and R&D (49%). Looking ahead, respondents expect incoming leaders to prioritize technology modernization (42%), artificial intelligence (42%), new product and service development (40%), and expansion into new geographic markets (39%). Next-gen leaders themselves cited keeping pace with technological change (38%), building leadership and management skills (37%), and staying competitive (36%) as their toughest challenges.
To close the readiness gap, family businesses are leaning on structured development paths rather than informal mentorship alone. Forty-four percent of respondents give next-gen leaders formal roles tied to accountability and performance measurement, 43% emphasize on-the-job training and shadowing senior leaders, and 40% require next-gen family members to work outside the family business before joining it. Yali Yin, global leader of Deloitte Private, noted that succession is about more than transferring titles. “Family businesses are increasingly recognizing that succession is not simply about transferring ownership or leadership titles, it is about preparing future leaders to operate in a far more complex and technology-driven environment,” Yin said.
The businesses surveyed generated an average of $2.8 billion in revenue in 2024, with combined revenue across respondents reaching $4.4 trillion, underscoring the scale of wealth and enterprise value tied up in these transitions. For advisors, the findings reinforce the importance of integrating succession planning into long-term client strategy. Related coverage includes OnePoint BFG’s integration of the RISR platform to serve business-owner clients amid the succession wave, and a prior study showing 59% of heirs assume a plan exists while only 35% of owners have one. Additionally, Osaic and LPL have attracted nearly $1 billion in advisor teams through W-2 succession models, highlighting the growing market for structured transition solutions.
