Deloitte Private Survey Reveals Board Governance, Succession Planning, and AI Adoption Top the Agenda for Family-Owned Enterprises

NEW YORK, July 16, 2025 – A Deloitte Private survey of family enterprise leaders revealed that increasing the use of AI (42%) and technology investments (37%) are the strategic priorities over the next year. Meanwhile, operational priorities are focused on increasing profitability through cost improvement (49%), increasing productivity (48%), and mitigating risk (48%).

The study, Private Company Outlook: Family Enterprise, surveyed 100 family enterprise leaders to understand their priorities around board governance, succession planning and tech adoption over the next 12 months.

Key Findings:

• Boards target AI and tech expertise. As companies look to find qualified candidates in emerging tech fields, two-thirds (66%) either already have or are in the process of adding board members with technology and emerging technology expertise. Meanwhile, respondents shared that the main barriers to adding board members with tech experience were difficulty finding suitable candidates (46%) and the limited understanding of emerging technologies among current board members (42%).
  
  
• Organizations cite challenges with preparing the next generation for leadership. While 49% of leaders report feeling well or very well prepared for leadership succession, a significant number face hurdles including a lack of next generation interest (37%), unclear selection criteria (31%), and leadership skill gaps (31%). The top methods used to position next generation leaders for success include formal education (52%), on-the-job training (48%), and mentorship (45%).
  
  
• Smaller family businesses are planning more M&A moves. Around half of all respondents said their organization aims to use M&A strategies to strengthen supply chains (51%) and expand market share (48%) – with nearly 60% considering public markets as a funding route. The survey also found that family enterprises with annual revenues from $100 million-$500 million were more likely to use M&A to strengthen their supply chain (57%) compared to those with $500 million or above in revenue (43%).
  
  
• Organizations seek structure, as formal governance gains ground. A strong majority of family enterprises have formalized their governance through structures like family councils (73%) and governance frameworks (83%), demonstrating a commitment to aligning business and family interests.

“Family enterprises are navigating a pivotal moment – balancing the need to prepare the next generation of leaders with the imperative to invest in transformative technologies to keep their organizations competitive now and in the future,” said Laura Pearson, US Family Enterprise Leader, Deloitte Private. “We’re seeing families move beyond informal decision-making to adopt clear governance frameworks that align family values with business goals, make bold investments in technology, and seek board directors with AI fluency and sector-specific expertise. These efforts can enhance generational insights and help ensure the business is equipped for innovation and long-term growth.”

About the survey

The survey of 100 family-owned company leaders was conducted online by an independent research company between April 28th and May 2nd, 2025. Respondents represented C-level, president, board member, and partner/owner roles at family-owned companies in the US with annual revenues of US$100 million to US$1 billion+. For more information about this survey, please visit: Private Company Outlook.

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