Succession ambiguity is a universal risk

Succession ambiguity is a universal risk

By Gaya Vytheswaran‏, Chief Executive Officer for EMEA, Howden Private Wealth

Across Asia, wealth has grown at remarkable speed, but governance has not always kept pace. The result is a question increasingly at the centre of family enterprises: how should leadership, ownership and legacy pass from one generation to the next?

The region is now home to 981 billionaires, the largest concentration globally, and much of this wealth has been created within a single generation. Over the coming decade, Asia is expected to see the largest intergenerational wealth transfer in its history, with US$5.8 trillion projected to change hands between 2023 and 2030, according to a study by McKinsey.

Yet readiness has not always kept pace with scale. Around 37% of Asian families lack a formal succession plan, even as 38% of family offices now rank succession planning as their top priority. This imbalance is beginning to reshape how families think about governance. Structures once informal are becoming more defined and succession conversations are starting earlier.

Different regions, different succession instincts

Succession is a universal challenge, but families in different regions have historically approached it in different ways.

In Europe, governance structures often developed alongside the businesses themselves. Formal boards, professional management, and institutionalised decision-making processes have long helped clarify leadership transitions and ownership roles. These frameworks do not eliminate disagreements, but they provide rules and reference points that can stabilise succession when the time comes.

In the Middle East, continuity has often been sustained through strong family cohesion and founder authority. Decision-making authority often remains concentrated among senior family members, with trust and shared identity playing an important role in maintaining alignment.

In both contexts, succession often unfolds gradually with transitions planned years in advance, allowing time for leadership responsibilities and ownership structures to evolve.

Asia presents a different dynamic. Much of the region’s wealth has been created more recently, often through founder-led businesses that expanded quickly across borders. As those businesses mature, governance frameworks are being formalised in real time.

Family enterprises that were once tightly centred around a founder are now navigating more complex realities: multinational operations, diversified assets, and family members who may live, work, or study in different jurisdictions. Governance structures are evolving to keep pace with that complexity.

When succession challenges are rarely about wealth

On the surface, succession planning often appears to be a structural issue. In practice, the underlying tensions are frequently more human than technical.

Succession ambiguity is not unique to Asia. In the UK, for example, one survey found that 69% of family business owners had no documented succession plan. What distinguishes Asia is not the existence of these challenges, but the speed at which they are emerging.

In many families, the most difficult questions are not about legal frameworks but expectations. Cultural norms can make conversations about inheritance uncomfortable. Assumptions about equal treatment among siblings, or expectations that the eldest child should eventually assume leadership, may sit uneasily alongside the realities of managing modern businesses.

When these expectations remain unspoken, they tend to surface precisely when leadership needs to transition.

Families that navigate succession more smoothly often introduce governance structures earlier in the process. Roles and ownership are documented sooner, and next-generation family members are invited into governance discussions earlier. Over time, this combination of structural clarity and open dialogue becomes a stabilising force.

What global families reveal about succession

Across industries and regions, family enterprises offer a useful lens into how succession strategies shape long-term stability.

One pattern appears repeatedly: clarity around ownership, authority and fairness often determines whether succession strengthens an enterprise or creates internal tension.

In Asia, one of the most widely discussed examples in recent years emerged from Singapore-based paint magnate Goh Cheng Liang, founder of the business that became a major shareholder in Nippon Paint.

In 2025, Goh implemented a succession structure that departed from the conventional parent-to-child transition. Instead, he transferred a 55% economic stake in the family holding company directly to six of his grandchildren, effectively skipping a generation. At the same time, approximately 91% of the voting rights remained with his eldest son, ensuring continuity in leadership and management.

The structure separated economic ownership from governance authority. Wealth was distributed more broadly across the third generation, while operational control remained concentrated in experienced leadership.

Arrangements like this remain relatively uncommon, but they illustrate how some families are beginning to rethink succession frameworks as businesses grow more complex and multi-generational.

At the other end of the spectrum, global examples also demonstrate how ambiguity can create friction. The widely reported disputes within the family of media executive Rupert Murdoch show how unclear trust structures or leadership expectations can lead to years of internal conflict, even in highly established enterprises.

Taken together, these examples highlight a broader reality: succession challenges rarely arise from wealth alone. They emerge when governance structures struggle to keep pace with changing family dynamics and expanding businesses.

A new phase of family governance

Viewed from a global perspective, Asia’s family enterprises appear to be entering a new phase of governance evolution.

Rather than relying solely on informal arrangements or founder-led decision-making, many families are institutionalising governance earlier in their lifecycle. Formal boards, family constitutions, and structured decision-making frameworks are becoming more common, particularly as businesses expand internationally.

At the same time, families are recognising that governance structures alone cannot sustain alignment. Family relationships, communication, and shared expectations continue to shape how succession unfolds in practice.

For families and advisors across Europe, the Middle East and Asia, the lesson is increasingly clear. Culture alone cannot manage the complexity of modern wealth, but structure alone cannot preserve family cohesion either.

Succession done well is therefore more than a handover of leadership or assets. It is the creation of a system balancing governance, communication and long-term alignment, capable of sustaining both enterprise and legacy across generations.