Advisers surveyed by Julius Baer and EY said only 18.5% of wealthy business families included the next generation equally in sale discussions, pointing to a gap in succession planning.
The finding comes from the sixth Family Barometer, published Oct. 20. Advisers said 45.6% of families consulted next-generation members about a potential sale without giving them a vote. The 18.5% group included younger relatives actively and on an equal footing in discussions.
Advisers assessed 22.6% of the next generation as ready and qualified to take over the family business. For business-owning families considering an exit, they put the fully prepared share at 2.3%, compared with 56.3% partly prepared and 29.5% unprepared.
A lack of family agreement over a sale was cited by 80% of surveyed advisers as an obstacle to preparing an ownership transfer, ahead of tax considerations at 55.4%. Emotional attachment to the business was the most commonly identified source of disagreement, cited by 60.6%. Advisers also identified differing views about a company’s future and its value.
EconoTimes’s earlier coverage of business exits in Asia examined a different regional pattern: Advisers there most often cited valuation differences as a source of disagreement. The worldwide findings put emotional attachment first.
Ashwin Patni, head of wealth management solutions at Julius Baer India, told The Economic Times that decisions in some Indian families remain concentrated in a founder or patriarch. He said unclear roles across the family business and family office can complicate decisions about a transfer.
Julius Baer says outside advisers and family governance structures can help relatives reach agreement. Hendrik Kuhl, head of wealth planning advisory Germany at Julius Baer, said, “Many families have constitutions that sit in a drawer.”
The decisions continue after a sale. Preserving shared family wealth was identified as a leading priority by 79.4% of survey respondents.
