As the biggest intergenerational transfer of business ownership in modern history gathers pace, a new report suggests that many family fortunes may be vulnerable to something far less tangible than tax exposure or legal complexity: emotional distance. Veritage International says the real obstacle in succession is often not a lack of documents or advisers, but a breakdown in how founders and heirs understand each other.

The firm’s report, "The Missing Link in Family Business Transitions: How Emotional Disconnection Threatens Family Legacy", is based on responses from 35 founders and current owners and 42 members of the next generation across multiple countries. Veritage says the findings point to a widening gap between those preparing to hand over control and those expecting to receive it, with each side measuring readiness in very different ways. Founders tend to stress financial literacy, discipline and proven leadership, while younger family members place greater weight on identity, self-awareness and emotional maturity.

That mismatch is already shaping succession outcomes. Veritage says more than half of the senior generation expressed concern about relinquishing control, with many saying the next generation was not yet prepared. But younger respondents largely saw the problem differently, describing a reluctance by senior family members to let go. The result is a familiar stalemate in family enterprises: one side waits for experience it believes has not yet been earned, while the other waits for responsibilities it believes have been withheld.

The report also highlights a striking gap in how inclusion is perceived. According to Veritage, most founders and current leaders believe the wider family is involved in succession discussions, yet far fewer in the next generation share that view. Many younger respondents said there was no clear route to ownership or meaningful participation in major wealth decisions. Veritage argues that this points to a deeper communication problem, one that leaves families with formal governance structures but little shared understanding of how decisions are actually made.

That matters because, the firm says, traditional wealth-planning tools often fail to address family dynamics. While many families have wills, shareholder agreements and investment policies in place, Veritage found that most respondents said such documents do not deal with emotional issues. The report also points to mental health as an overlooked pressure point, with younger family members more likely to report having faced mental health challenges and less likely to feel safe discussing performance-related stress with relatives. In that context, Veritage is urging families to treat emotional governance, coaching and honest dialogue as part of succession planning rather than as optional extras. Deloitte has similarly described a "succession paradox" in family firms, noting that many expect leadership changes within the next decade even as relatively few have a plan in motion.

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Source: Noah Wire Services