Asia’s ultra-wealthy next-gen have least say in post-sale plans for family business: Julius Baer

[SINGAPORE] Succession planning is the top priority for Asia’s ultra-wealthy families, yet the next generation has less say in the decisions made after the family business’ sale than their counterparts in other regions, a new report has found.

Only 8.4 per cent of respondents advising ultra-high-net-worth (UHNW) families in Asia said the next generation actively participates in implementing post-sale strategies with an equal say – the lowest among the regions surveyed, according to Julius Baer’s Family Barometer 2026 report.

That figure was 13 per cent in Europe, 16.7 per cent in the Middle East and 17 per cent in Latin America.

In Asia, another 42 per cent said the next generation was consulted but had no vote, while 8.4 per cent said they were not consulted at all.

Findings from the report suggest that younger family members may have limited influence over major decisions affecting family businesses, even as many Asian families approach their first major succession or liquidity event.

Some 700 financial professionals worldwide who advise UHNW families were surveyed; 20.2 per cent of their clients are mainly based in Asia.

Christos Anagnostopoulos, head of family office solutions and advisory for Asia at Julius Baer, noted that succession and exit decisions often unfold simultaneously.

“Families are confronting these questions in real time,” he said. “Does the next generation want to take over? Are they prepared to do so? If not, what alternatives exist?”

The report also found that, globally, many family businesses are not well-prepared for a sale or transition to the next generation.

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Just 2.3 per cent of respondents said the families they advise were fully prepared for a transfer, while another 12 per cent found them largely ready with minor gaps.

The next generation, meanwhile, is often still developing the experience, confidence and perspective required to assume ownership or leadership responsibilities.

In Asia, differing valuation expectations were the most frequently cited source of family misalignment during exit decisions, followed by disagreement about the future of the business. Globally, emotional attachment ranks first as a source of tension for family businesses in transition.

“Across Asia, the most prepared families have made succession a shared strategic priority, well before a transaction becomes relevant,” said Jimmy Lee, member of the global wealth management committee and region head for Asia at Julius Baer.

Post-exit moves

Once a business is sold, new questions tend to emerge around how proceeds should be invested, managed and passed on to future generations, the report said.

More than three-quarters of respondents globally said that, before a sale, the UHNW families they advise would consider an exit to preserve family unity. This suggests that a sale can be as much a governance decision as a financial one, noted the report.

After a sale, close to four in five respondents globally cited preserving joint family wealth as a priority, it added.

In Asia, building a family legacy ranked second among family-related priorities, after succession planning, while opportunities for individual and family growth came in third.

“The questions a founder faces after selling a business are very different from those confronting a third or fourth-generation family with multiple branches and shareholders,” said Maria Eugenia Mosquera, head of wealth planning – key clients and family office services at Julius Baer.

“That switch from entrepreneur to wealth owner is an entirely new experience. The skills that helped create a successful business don’t automatically translate into managing family wealth over the long term,” she observed.

Single-family offices and external advisers 

In Asia, some 75.5 per cent of respondents identified establishing a single-family office as a route families would take after an exit, which is the highest proportion across the regions covered.

“(Post-sale), the wealth becomes significant enough to require institutional management,” said Anagnostopoulos. “And for many families, it also becomes their primary source of income. It has to be managed properly.”

But the preferred model is rarely one of complete self-sufficiency. The report found that families in Asia are more likely than elsewhere to retain strategic decision-making within the family while relying on external investment professionals for specialist expertise.

“Unless you are a large-scale family office with substantial resources, it is difficult to build dedicated teams across every asset class, as well as manage non-investment functions such as legal affairs, operations and estate planning,” added Anagnostopoulos.

“Most families will need external expertise in some areas.”