Asia’s ultra-wealthy next-gen have least say in post-sale plans for family business: Julius Baer
Gaps in valuation expectations are also most-cited cause of family misalignment during exit decisions in region
Succession planning is a top priority for Asia's ultra-wealthy families, yet the next generation often has little say in post-sale decisions, according to a new report. Only 8.4% of advisers to ultra-high-net-worth (UHNW) families in Asia said the next generation actively participates in implementing strategies after the sale, the lowest among regions surveyed.
Europe and the Middle East see 13% and 16.7% participation, respectively. In Asia, 42% of respondents said the next generation was consulted but had no vote, while 8.4% said they were not consulted at all. The report surveyed 700 financial professionals worldwide who advise UHNW families, with 20.2% of their clients based in Asia.
Julius Baer's Christos Anagnostopoulos noted that succession and exit decisions often occur simultaneously, leaving families to grapple with questions such as whether the next generation wants to take over and if they are prepared to do so. Global data shows that only 2.3% of families are fully prepared for a sale or transition, and emotional attachment to the business is a major source of tension.
In Asia, building a family legacy was the second-highest priority after succession planning, while opportunities for individual and family growth were third.
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- Asia’s next-gen least involved in post-sale plans for family business: survey businesstimes.com.sg
