More than a quarter of family-owned businesses are either navigating a leadership succession right now or expect to face one within the next decade, but fewer than half describe their current succession plans as fully developed.
According to Deloitte Private's latest Family Business Insights Series report, 27% of families and 40% of family businesses are either in the middle of a succession or anticipate one within 10 years. The findings are drawn from a survey of 1,587 family businesses with annual revenues of at least $100 million across 35 countries, supplemented by in-depth interviews with 30 senior executives.
While the study found that succession planning is widely treated as a priority, with 89% of families and 82% of family businesses saying they have some form of plan in place, only 50% of families and 46% of family businesses characterized those plans as broad and well-developed.
That disconnect between having a plan and having a robust one is where advisors may find the greatest opportunity to add value.
The three biggest obstacles identified by respondents were a next generation seen as underqualified or lacking experience (35%), difficulty pinpointing a suitable successor (33%), and current leaders who are reluctant to step back (32%).
Confidence levels reflect that 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 track is a growing openness to leadership from outside the family. The share of family businesses expecting to install a non-family chief executive after their next succession is projected to double, climbing from 13% today to 26% post-succession.
Deloitte Private's research frames this as part of a broader move toward more 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 several priorities simultaneously.
"Succession is one of the defining moments for family businesses because it requires balancing legacy, governance, and future growth at once. 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. Businesses that invest early in leadership development, governance, and practical experience for future leaders should be better positioned to sustain continuity across generations," Gooch said.
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 research and development (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%). At the same time, 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 said they give next-gen leaders formal roles tied to accountability and performance measurement, 43% emphasized 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, said the stakes extend beyond who holds the title.
"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. The next-generation is already influencing business transformation through technology, innovation, and new approaches to governance. Organizations that embed succession into long-term strategy and leadership development should be better equipped to preserve both continuity and competitiveness," 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.
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