Business succession, only 43% plan for the future

In family businesses, succession is a transition that brings into play the family's history, the company's vision, and the ability to imagine the future without losing one's roots. Deloitte Private's "Family Business Succession Planning and the Next Generation" report , based on 1,587 family businesses worldwide, confirms that this transition is one of the most widespread and delicate challenges today. The numbers clearly demonstrate this. 33% of businesses will face a leadership change within ten years, nearly one in three. This is not an issue to be postponed, but a structural issue that impacts the continuity and very survival of the business.

In this article, we've chosen to explore the importance of succession planning, drawing on a study conducted by Deloitte Private, both for family businesses and for businesses of any size, which are subject to heir takeovers, presenting risks and conflicts that can often lead to closure.

The fragility of succession plans

Many businesses claim to have a succession plan, but when it comes to the details, a different truth emerges. Only 43% of Italian businesses have a clear and detailed succession plan. In practice, succession is often managed with partial, outdated, or even informal tools. This is where legal instruments come into play. Wills, which remain the simplest and most common form of defining the transmission of assets and shares, and family agreements, which allow the transfer of the business or shares to one or more descendants while the entrepreneur is still alive, establishing compensation and protections for other family members. When these tools are missing or used superficially, continuity becomes a risk and generational transition can become a source of conflict.

In Italy, in recent months, we've been reading about the succession issues surrounding the Del Vecchio family in major newspapers. Specifically, the Delfin company, owned by varying degrees by the heirs, owns several major companies. A lack of balance can lead to the failure to select a suitable CEO, delaying important decisions that could determine the future of international brands. We've also recently observed and read about the will of designer Valentino. From what has emerged in the press, Valentino appears to have planned every single detail and role for the company's future.

This does not mean that companies are standing still, but rather that succession affects the speed of corporate decisions. 

Choosing a successor: the most delicate issue

The most complex issue remains the choice of a successor. The new generation is often perceived as insufficiently qualified, while the current leadership struggles to relinquish control. These two tensions feed each other. Younger leaders are not considered ready, and senior leaders don't feel ready to step down. Lack of experience, the difficulty of identifying the right person, and the reluctance to relinquish leadership make succession, even more of a psychological issue than a technical one. It's a clash between generations that involves trust, the fear of losing control, and the fear that change might alter the company's identity.

Trust in successors is limited, and this is a burden. Only 48% of respondents are "very confident" in the current family leadership, a percentage that drops to 37% when considering the next generation. Succession is perceived as a leap into the unknown rather than a managed process, and when trust is lacking, generational transition becomes a source of uncertainty that can slow down the business.

External managers and family continuity

The report also notes a significant cultural shift. The share of non-family CEOs is set to double, from 13% to 26%. This trend is driven by the growing complexity of businesses, the poor preparation of the new generation, and the desire to mitigate risks by entrusting leadership to "neutral" figures. This isn't a renunciation of tradition, but rather a way to protect it. More and more families are recognizing that continuity doesn't necessarily mean internal leadership, but rather the ability to ensure stability, expertise, and vision.

Succession as a process

Succession requires time, dialogue, appropriate legal instruments, clear governance, effective training of successors, and openness to external expertise. Companies that approach it as an emergency, rather than a strategy, are most exposed to internal crises, decision-making bottlenecks, and loss of competitiveness.

For a family business , preparing for succession means protecting assets, avoiding conflicts between family branches, ensuring operational continuity, defining roles and responsibilities, building governance that outlives people, and preparing the next generation with paths of real responsibility.

Succession is how a family decides how to navigate the future. Doing so with the right tools avoids conflict and uncertainty. Agenzia delle Successioni works precisely at the intersection of inheritance and business continuity, providing its professionals to citizens. Contacting them for a consultation is easy: just fill out the form and describe your personal situation.

In this article you can read the in-depth analysis dedicated to family businesses and the division of inheritance.