Deloitte Private global report reveals succession preparedness gaps as family businesses navigate generational transition

New York, NY, USA, 8 July 2026: The release of Deloitte Private’s global Family Business Insights Series: Family Business Succession Planning and the Next Generation, 2026 reveals the experience family businesses have with succession planning in today’s environment and the challenges they face in preparing the next-generation for leadership. Based on a survey of 1,587 family businesses with revenues of at least US$100 million across 35 countries and in-depth interviews with 30 senior executives, the research highlights that while succession planning is widely recognized as an important priority, many family businesses still face significant gaps in preparedness and confidence.

“Succession is one of the defining moments for family businesses because it requires balancing legacy, governance, and future growth at once,” says Dr. Rebecca Gooch, Deloitte Private Global Head of Insights, Deloitte Global. “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.”

Preparedness remains uneven as succession pressures grow

The report highlights the scale of generational transition currently underway across family businesses globally, as 27% of families are either currently navigating succession or expect to do so within the next decade, and 40% of family businesses anticipate changing CEOs during the same timeframe.

Although succession planning is widely recognized as important to businesses, the findings reveal that preparedness remains uneven across the board. While 89% of families and 82% of family businesses report having some form of succession plan in place, merely 50% of families and 46% of family businesses say those plans are broad and well-developed, suggesting that more needs to be done to help ensure the longevity of family businesses amid leadership shifts. 

Globally, the leading succession challenges center on leadership readiness and governance. Respondents identified the next-generation being insufficiently qualified or lacking experience (35%), difficulty identifying a suitable successor (33%), and current leadership being reluctant to relinquish control (32%) as the three most significant barriers to successful succession planning. However, the report notes that successors should be given access to relevant leadership experience to be able to fully grow into new roles.

Family businesses increasingly look beyond family leadership

As family businesses confront growing operational complexity and leadership readiness concerns, many are becoming more open to outside executive leadership, rather than exclusively relying on members of the family. Globally, 85% of respondents indicate some level of confidence in current family leadership, while 48% are highly confident, 37% are somewhat confident, and 15% are somewhat or fully unconfident. In response, the report finds that the proportion of family businesses expecting to appoint a non-family CEO after succession is projected to double globally, rising from 13% today to 26% post-succession.

This trend is visible across the regions and reflects a broader shift toward professionalized governance structures and external knowledge. The findings suggest that many family businesses increasingly view outside leadership as a path toward strengthening continuity, reducing succession-related tensions, and navigating increasingly competitive and globalized markets.

At the same time, next-gen family members are already playing a growing role in shaping the future direction of family enterprises. While senior family members continue to dominate top leadership and governance roles, next-gen family members are especially active in technology (51%), philanthropy and community engagement (51%), sales and marketing (50%), and innovation and R&D (49%) positions.

Technology, AI, and innovation emerge as Next Gen priorities

Management, innovation, technology, and philanthropy are common "testing grounds" for next-gen, as they build credibility before moving toward CEO or board-level positions as the business and family mature. Globally, respondents expect next-gen leaders to place greater emphasis on technology modernization (42%), artificial intelligence (42%), new products and services (40%), and international expansion (39%). However, the next-generation also faces significant challenges while working within the family business with advancement of technology (38%), developing leadership and management capabilities (37%), and remaining competitive (36%) as the top obstacles confronting future leaders.

To address these challenges, family businesses are increasingly emphasizing experiential development and accountability. Forty-four percent of respondents say they assign formal roles with accountability and performance management structures to next-gen leaders, while 43% prioritize on-the-job training and leadership shadowing. Additionally, 40% of family businesses require next-gen family members to gain outside work experience before joining the family business.

“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,” says Yali Yin, Deloitte Private Global leader. “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.”

For more information or to access the full report, please visit Deloitte Private’s website. Family business succession planning and the next generation, 2026