Press release
Grant Thornton releases 2025 Family Business Report
18 Sep 2025
Succession planning continues to be the number one challenge for Australian family businesses. The report encourages reframing succession as a process rather than linking it to retirement.
Grant Thornton has released its 2025 Family Business Report this National Family Business Day, uncovering two key trends: succession planning remains the number one challenge, and the rising generation is an experienced cohort of leaders in waiting. The report findings reveal over 30 per cent of the rising generation are aged between 44-64, presenting a wealth of experience and knowledge ready to step up.
Succession planning focuses on strategic priorities for the family business and being ready for change – whether within the family, economic factors, or across the industry they operate in. Currently in Australia, only 19 per cent of family businesses have a documented succession plan in place. Both incumbent and rising generations agree succession planning is critical to effectively transition leadership within family businesses, but when it’s thought about alongside retirement, often there’s not enough time to plan a smooth handover.
Alongside succession planning, current family business leaders also listed attracting and retaining staff and cashflow issues as challenges. On the other hand, the rising generation highlighted economic uncertainty given the current rapidly evolving business landscape, cashflow issues and challenging family relationships.
Incumbent generation top challenges
- Attracting and retaining staff (37%)
- Cashflow issues (28%)
- Succession planning (22%)
- Economic uncertainty (22%)
- Reduced sales due to cost of living (20%)
- Adapting to AI (18%)
Rising generation top challenges
- Succession planning (41%)
- Economic uncertainty (38%)
- Cashflow issues (26%)
- Challenging family relationships (21%)
- Reduced sales due to cost of living (17%)
- Political uncertainty (14%)
Kirsten Taylor-Martin, Partner & National Head of Family Business Consulting said: “The report revealed interesting insights, with succession planning continuing to be a shared challenge across generations. Both generations share this challenge because succession planning is complex and often uncomfortable to talk about, requires strategic foresight, emotional readiness, and it’s fair to say, succession is still thought of alongside retirement.
“The age profile of the rising generation was another insightful finding. With more than 30 per cent of this group aged between 44-64, it shows we have a cohort of experienced leaders in waiting – so succession planning is more critical than ever. If you’re only thinking about succession planning alongside retirement, you may not be giving yourself enough time and space to plan well to ensure your family business is growing for generations to come. Succession planning is not synonymous with retirement – it should be a strategic priority as it’s about being ready for change, whenever that may come.”
Alongside succession and the rising generation eager to step forward, the 2025 Family Business Survey results revealed two other key themes for Australian family businesses:
1. Differing priorities across the generations
The incumbent generation focuses on business operations and external risks, whereas the rising generation focuses on internal family dynamics.
2. Embracing digital transformation
Digital adoption is influencing operations, decision-making, and collaboration, and while some of the incumbent generation approaches technologies like AI cautiously, most of the rising generation is embracing its potential.
As Australia prepares for an unprecedented $3.5 trillion intergenerational wealth transfer, getting succession right through shared values, collaboration and innovation is more critical than ever because the stakes have never been higher.
Click here to read the full report: Empowering the rising generation.
Experts / Authors
Ailish Parr
Communications Manager at Grant Thornton Australia
