Just 2.3% of family businesses prepared for exit

Advisers believe just 2.3 per cent of families considering a business exit are ‘fully ready’, according to a report from Julius Baer.

Its global study of wealth management professionals showed that a further 12 per cent of families were ‘largely ready’, with minor gaps that needed resolving.

Julius Baer’s Family Barometer 2026, in collaboration with EY, examined family wealth before, during, and after a business exit.

It noted that while owners often knew where to begin, with accounts that can be audited and ownership arrangements untangled, preparing the family took practice.

“Many families have constitutions that sit in a drawer,” said Julius Baer head of wealth planning advisory Germany, Hendrik Kuhl.

“But governance only does its job when it becomes part of the family’s ongoing decision-making process.”

Succession planning ranked top among family topics across every region and professional role, while intergenerational wealth transfer also gained in perceived importance.

However, younger family members were found to often have limited influence, with only around 18.5 per cent participating actively with an equal say in exit discussions.

External professional advisers were identified as the leading contributors to family alignment on business exits, followed by family governance structures.

Julius Baer stressed that coordinated advice helps owners understand how a proposed deal would impact their wider wealth and circumstances.

More than three quarters (77 per cent) of families said they would consider an exit to preserve their family unity.

The report also explored families’ investment priorities, with geopolitical diversification at the top of the agenda, followed by inflation protection, while taxation was the leading societal concern.

Meanwhile, capital preservation and long-term growth led post-exit investment priorities, followed by replacing the income the company previously provided.

Following a business sale, respondents felt preserving joint family wealth was the leading area requiring attention, cited by 79.4 per cent of respondents, followed by clarifying roles and finding a new sense of purpose (68.4 per cent).

Almost half of respondents report only limited discussions with the next generation about post-sale strategy.

“Before discussing investments, families need to understand what decisions need to be made, and how they will make those decisions together,” concluded Julius Baer head of wealth planning - key clients & family office services, Maria Eugenia Mosquera.

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