Deloitte Private: Survey Reveals Family Businesses are Facing a 'Succession Paradox'

NEW YORK, Feb. 10, 2026 /PRNewswire/ -- A new Deloitte Private survey of 300 family business executives finds that nearly 8 in 10 (78%) expect a CEO transition within the next decade, and 42% foresee this shift within just three to five years. Yet the data also highlights a "succession paradox": the dramatic gap between intention and action. While 85% of respondents agree that strategic CEO succession planning is critical to long-term success, only 57% have established a plan, and fewer than a quarter (23%) are actively implementing one. This disconnect is further reinforced by the fact that 30% of respondents admit their succession planning is "behind schedule."

The study is the first installment of Deloitte Private's new series, Setting the table: Succession planning strategies for family business legacies, designed to provide these businesses with practical insights and a clear roadmap for formalizing an effective succession process. Part 1 investigates the timing of CEO transitions, the board's role, key decisions for the executive team, family dynamics, and the crucial roles of trust, culture and risk management.

Key findings

• Competing pressures put a pause on planning: Among those surveyed who say their succession planning efforts are behind, 6 in 10 (62%) attribute their inaction towards succession "not being a critical business priority at the moment," despite the risk of operational and financial disruption if a transition is needed unexpectedly.
  
  
• Family members are no longer the default option for CEO: While 61% of surveyed family businesses report at least one family member interested in the CEO role, fewer than a quarter (23%) believe those individuals are ready to assume the position in the near term. Succession preferences also vary by company size: Only 32% of companies with over $1 billion in revenue expect a family member to become CEO, whereas companies under $500 million are evenly split, with 47% favoring a family member and 46% preferring a professional manager. Notably, once a family business selects professional management, three-quarters (75%) plan for future CEOs to continue being non-family executives.
  
  
• Boards and councils are valuable assets in succession planning: Independent oversight and outside perspective are important for family enterprises where business and family dynamics often intertwine. According to the survey, 76% of companies with $100 to 500 million in revenue have a board of directors, rising to 96% among those over $500 million. Larger private companies are also more likely to have a family council (46% compared to 29% for smaller organizations). When these governance bodies are in place, CEO succession can become a more regular topic, with half of boards (49%) and family councils (50%) including it on the agenda at least once a year.

"A smooth and successful leadership transition is a complex, involved process — one that should be anchored in alignment and trust among family owners, employees, leadership teams and external stakeholders," said Laura Pearson, Deloitte Private US Family Enterprise leader. "Preserving a culture driven by mission and values may be the difference between continuity and chaos and the key to creating lasting value for generations to come."

About the survey
A survey of 300 executives from family businesses with knowledge of CEO succession planning was conducted online by an independent research firm in September 2025. Respondents included C-level executives, board members, and partners/owners of family-owned companies across the United States, each with annual revenues ranging from US$100 million to more than US$1 billion.

Deloitte Private serves the unique needs of private companies and their stakeholders by leveraging the full depth of Deloitte's technical experience and industry capabilities to serve private enterprises, family-owned businesses, private equity portfolio companies and emerging growth companies. Visit us at https://www2.deloitte.com/us/private or follow us on LinkedIn.

About Deloitte
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SOURCE Deloitte