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Indian Families Lag in Succession Planning
28 Oct
Summary
- Only one-third of Indian families have documented succession plans.
- Wealth preservation is the top priority for 78% of families.
- Next generation influence grows significantly by the third generation.
A new report indicates that merely one-third of Indian family enterprises possess a documented succession plan, with an additional 42% having informal agreements. Only 6% of families do not consider succession a priority.
Wealth preservation is paramount for 78% of these families, focusing on continuity and values. Diversification and income growth are priorities for 46%, while 38% aim to build a legacy beyond financial returns.
Family offices and global exposure are becoming more important, each prioritized by 30% of respondents. Decision-making is generally cautious, favoring long-term appreciation and stability.
The next generation's involvement in decision-making escalates with each generation. First-generation families see 36% of next-gen influencing decisions, dropping to 18% in the second generation before rising to 54% in the third.
