5 essential succession steps family businesses are taking as we approach 2026

The question isn’t whether to plan for succession – it’s how to do it meaningfully and early. So, what should the incumbent generation implement to ensure a successful and prosperous future for their family business as we approach 2026?

The rising generation wants to step up, and they’re reimagining what’s possible. They’re tackling business challenges with fresh eyes and bold ideas, bringing creativity and innovation to the forefront. But to truly thrive, they need the right support – whether that’s through mentorship, financial training, or guidance from trusted external advisors.

We encourage conversations and formalising training. When I work with family business clients, I see firsthand the passion and perseverance it takes to build something lasting. Succession isn’t about replicating the past; it’s about evolving with purpose, which sometimes means tough conversations. It’s about open communication, critical thinking and transparency.

Our Grant Thornton 2025 Family Business Report identified the following 5 essential steps family businesses are currently incorporating to ensure a smooth succession process:

1. Mentoring to build skills

The survey revealed 63 per cent of the rising generation were mentored by a family member compared to 37 per cent who were mentored by a non-family member. Mentorship in family business is not just about imparting knowledge from one generation to the next. It’s about sharing, growing and building confidence around thought processes, giving opportunities for more responsibility and tools to be able to solve problems. This data shows that while a lot of the rising generation seek mentorship within the family, an outsider’s objective view could provide another confidential sounding board, offering an unbiased perspective on opportunities and challenges.

2. Give them a seat at the table
   

Succession planning (41 per cent) and challenging family relationships (21 per cent) were identified as some of the top concerns within the rising generation. Gradually involving them in decision-making helps demystify the process. It’s not always black and white – but real-world exposure builds understanding and prepares them to lead.

3. Boost and build financial literacy

37 per cent of the survey respondents identified that they were taking the necessary steps to encourage the rising generation to take an active role in increasing their financial literacy. While some of this can be done in an informal setting around the dinner table, many of the incumbent generation are encouraging formal participation in financial acumen programs to explore cash flow management, asset protection, and measuring business data for informed decision-making.

4. Let them see how it’s been done (and give them the opportunity to do things differently)

The survey identified that the generational transition is being delayed, with over 30 per cent of the rising generation falling between 44-64. As this leadership handover is happening later and the incumbent generation wants to remain in the family business longer, it’s critical that the rising generation is still given opportunities to shadow business operations. Whether that’s in the form of mentor shadowing, observing how decisions are made or meeting with key stakeholders, there should still be an opportunity to learn and grow. This will help when the incumbent generation does want to step up, as there’s already been intergenerational collaboration.

5. Get an objective, unbiased view

Working with external providers helps to gain an objective, unbiased view. Their role as objective facilitators helps in moments of intense emotion or when critical business decisions need to be made. Transition is inevitable, but external advisors ensure it can be done smoothly.

We have an opportunity to ensure the rising generation is prepared – let’s not miss it.

Kirsten Taylor-Martin is a highly experienced family business advisor with a specialisation in developing Governance Structures and Succession Plans to ensure the continued growth of family businesses across generations. Her approach is rooted in understanding the unique goals of both the family and the business, tailoring the most suitable structure and reporting mechanisms to achieve these objectives. With extensive international and Australian experience, Kirsten brings the world-best practices to her clients’ governance and succession planning solutions.