Succession planning is a defining issue for family businesses in the UK and Ireland, shaping their long-term sustainability and legacy. Recent research, including Armstrong Watson’s 2024 Family Owned, Privately Owned and Owner Managed Business Report, highlights both the complexities and opportunities inherent in passing the baton, whether to family or non-family members. Conversations between the Boyden team and family business owners and leaders at the recent Family Business UK Conference, of which Boyden was a principle sponsor, support this; always a key topic, it has been thrust further up the priority list due to the Government’s changes to Business Property Relief and the subsequent impact on generational handover.
The Challenge of Planning Ahead
A significant proportion of family business owners are approaching a transition point: Armstrong Watson’s 2024 report found that two-thirds (67%) plan to leave their business within the next decade. Yet, a notable 10% have not considered how they will exit, and among those intending to pass the business to their children, over a third have not discussed this with their adult children. Furthermore, nearly 30% do not have their successors already involved in the business. This lack of early and open dialogue can lead to uncertainty, tension and missed opportunities for knowledge transfer.
Family vs. Non-Family Leadership
Traditionally, family businesses have favoured internal succession, with 35% of owners planning to pass their business to their children. However, the landscape is evolving. Increasingly, families are considering non-family executives and board members, recognising the value of external expertise and diverse perspectives. Presentations and discussions at the Family Business conference underscored the importance of professionalising boards and bringing in independent directors to challenge, support and complement family leadership. This approach can help balance tradition with innovation and ensure robust governance.
The Next Generation: Opportunity and Risk
Transferring responsibility to younger generations is both an opportunity and a challenge. While next-gen leaders often bring fresh ideas, digital skills and a renewed sense of purpose, they may also have different values and ambitions. Research reveals that only 9% of UK family businesses have fully integrated succession plans, while 36% of those planning to hand over to children have not even broached the subject. This can result in a lack of preparedness, disengagement or even family conflict.
Successful transitions require structured development of the next generation, through formal education, external work experience and gradual introduction to leadership roles. It is equally important to clarify roles, expectations and decision-making authority, and to ensure that the process is fair and transparent for all family members.
Opportunities for Growth and Renewal
Despite these challenges, succession planning offers significant opportunities. Early, inclusive planning can unlock new avenues for growth, attract and retain talented non-family executives and strengthen the business’s reputation with stakeholders. The Family Business UK conference highlighted cases where family and non-family leaders are successfully working in partnership, blending heritage with broad leadership experience across multiple brands to drive innovation, resilience and sustainable long-term growth.
Conclusion
Succession planning is not a one-off event but an ongoing process that demands honesty, empathy and strategic foresight. For founders, executives and board members, the message is clear: start early, communicate openly and continuously and embrace both family and non-family talent. By doing so, family businesses can secure their legacy and thrive across generations.
The Boyden UK and Ireland team is currently undertaking some up-to-date research to gain further insights into the leadership and talent management challenges faced by boards and executive teams of family businesses. To contribute and receive a copy of the report, follow this link to the survey, which take just 5-10 minutes.
To find out more about Boyden’s partnership with family businesses and how we can help you to identify and develop successors for your business, contact Richard Waddell, Managing Partner Leadership Consulting:
+44(0)7799 454007
