Great wealth transfer redefines family business landscape

The ‘great wealth transfer’, estimated by Deloitte and other analysts to involve tens of trillions of dollars globally by 2030, is emerging as a central force behind changes in control, investment, and leadership succession for global families.

According to Deloitte’s ‘Defining the Family Business Landscape 2025’ report, more than $21tn in family-business revenue is currently generated annually by 18,000 companies worldwide, each with revenues of at least $100m. Many of these, says the consultancy, are preparing for a historic shift in ownership and governance.

The report, which surveyed 1,587 family businesses across 70 countries, finds that more than a quarter (26 per cent) of family firms expect to alter their ownership structures within the next three to five years.

Of these, 26 per cent plan to bring in external investors or private equity, 19 per cent to increase non-family management ownership, 12 per cent to go public, and 3 per cent to sell altogether.

“The great wealth transfer is one of the most important things we can talk about,” says Rebecca Gooch, global head of insights for Deloitte Private. “Some of the current generation are beginning to ask questions: do we want our children to take over? That’s a fantastic option for some, but others don’t have that option.”

Family affairs

Family businesses, which now make up 22 per cent of all companies globally with revenues exceeding $100m, are forecasted to grow their revenues 84 per cent this decade, from $16tn in 2020 to $29tn by 2030, according to Deloitte. Their expansion is outpacing that of non-family peers, reflecting their long-term strategic orientation and ability to leverage family capital over external debt.

Ms Gooch attributes this to a distinct mindset. “Family businesses have a different DNA. They tend to think in generations, not quarters. That prioritisation of long-term value creation often leads them to invest in innovation even during challenging times.”

Family firms typically rely on retained earnings (45 per cent) and family wealth (37 per cent) to fund growth, resulting in lower debt levels and more flexibility to seize opportunities when others cannot.

Europe is emerging as the top growth destination for family enterprises, buoyed by favourable market conditions and institutional maturity. Deloitte’s research shows that more than half (51 per cent) of global family businesses plan to expand operations in Europe in the next two years, ahead of North America (48 per cent) and Asia-Pacific (40 per cent).

“The EU’s single market of over 450m people makes cross-border trade far easier than elsewhere,” says Ms Gooch. “Europe is also one of the oldest family business markets in the world. Generations of experience in governance, succession planning, and resilience really matter.”

She adds that the region’s maturity brings structural advantages: access to seasoned advisers, strong governance frameworks, and a deep-rooted community culture of stewardship.

Generational evolution

While capital flows are a defining feature of the wealth transfer, Jessica McGawley, founder of Dallington, a specialist mentorship practice for the ‘rising generation’, argues that focusing on money alone misses the point.

“Far too much emphasis is placed on the great wealth transfer as the driver of change in governance and control structures,” she says. “It’s less about money and more about generational difference and evolution. The traditional, tightly held, often patriarchal models just don’t sit comfortably with most of the next generation.”

Ms McGawley observes that families are gradually involving more younger members in decision-making, but progress is uneven. “It’s definitely improving, but it’s still not where it needs to be. Age-appropriate beneficiary education and early exposure to the enterprise are vital if the next generation is to engage meaningfully.”

This shift in mindset also extends to how wealth is deployed. “Younger family members, millennials and Gen Z tend to see capital as a tool for impact,” she says. “They’re more conscious about how money is used. That doesn’t mean they reject traditional investing”

As ownership and leadership transition, governance remains a critical challenge. “Some of the current generation are looking at stepping down, but what are we going to do with the business?” asks Ms Gooch. “Do we want to look at private equity or outside investment options?”

Laura Pearson, Deloitte Private’s US family-enterprise leader, says clear governance is essential. “If you’re transitioning to a future generation, there are a lot of questions around who’s making what decisions and who’s prioritising which factors within the business. Staying organised and giving family members the voice they need is key.”

Sketchy objectives

Yet many families still fall short. Max Thowless-Reeves, founding partner at Sorbus Partners, notes that “in reality, many family businesses are poor at succession and intergenerational governance planning, with sketchy and ill-defined objectives and little communication between generations”.

He argues that governance should prioritise values and communication over legal certitude, focusing on defining what the business means to the family and how it aligns with their broader goals, including philanthropy.

As families accumulate sufficient wealth to meet their financial needs, many are turning attention to purpose and social impact.

“When a family has built wealth that satisfies their needs, it’s natural to explore how it can be deployed to pursue values beyond the commercial,” says Mr Thowless-Reeves.

“Philanthropy can be a powerful way to bring generations together and express the values that define them.”