CEO succession is one of the most consequential moments for family-owned businesses—and one of the most risky. Because these companies account for more than 70 percent of global GDP and 60 percent of the worldwide workforce, the stakes extend far beyond any single organization.
McKinsey research by Acha Leke, Avinash Goyal, Chaitali Mukherjee, and Supriya Kamath finds that only about one-third of companies create value after a CEO succession—but those that get it right see outsized gains. Nonfamily successors tend to deliver more consistent results, while family successors unlock the greatest upside when transitions are handled well.
What drives successful transitions? Treating succession not as a handoff, but as a long-term governance and leadership process. The most successful companies plan early, manage family dynamics deliberately, and use the transition to refresh rather than simply preserve strategy.
Discover more McKinsey research on business succession, ownership transitions, and how leaders can turn transitions into opportunities for innovation, productivity, and growth.
Passing the baton: Creating value through CEO succession at family businesses
The Great Ownership Transfer: A new era of business stewardship
Five differentiators of outperforming family-owned businesses in India
America’s small businesses: Time to think big
A microscope on small businesses: Spotting opportunities to boost productivity