Succession: Generational Transition in Swiss Family Businesses

Family businesses shape the Swiss economy like almost no other type of company. Around two-thirds of all SMEs describe themselves as family businesses. Many of these were built up by the current generation of owners and have been run for decades. Now, thousands of entrepreneurs are reaching retirement age, as the first part «Unternehmensnachfolge in der Schweiz: Worum geht es?» of the study by the Center for Family Business at the University of St. Gallen (HSG) and UBS shows.

For Prof. Dr Thomas Zellweger, Professor of Family Business at the University of St. Gallen (HSG), succession is therefore far more than a management project. “Succession is not a sprint, but a marathon,” he said in early 2026 in an interview with Leader Digital.. It is about ownership, leadership, trust and family. The team of authors behind the study series notes: Many entrepreneurs wish to keep their life’s work in family hands whilst maximising the company’s value, safeguarding jobs and preserving family harmony. Yet these goals often come into conflict.

Those seeking to achieve the highest possible sale price often end up with external buyers or investors. Conversely, those who prioritise continuity and family control frequently have to make financial compromises. Then according to the second part «Nachfolgeoptionen im Fokus – die Qual der Wahl» of the study, the ideal solution is rarely found.

The next generation thinks differently

Particularly insightful is the third part of the succession study, «Stolpersteine bei der familieninternen Unternehmensübergabe», which for the first time specifically examines the perspective of the successors. The result: internal family succession is by no means a given these days. Many potential successors carefully weigh up whether they want to take on the responsibility at all. The family business competes with alternative career paths, international job opportunities and other life plans.
 
“Joining the family business is just one of several career options,” says Zellweger. The dynamics are changing, particularly in entrepreneurial families with a strong academic background. The next generation wants creative freedom, a sense of purpose and personal autonomy. A purely traditional approach to succession is becoming increasingly rare. As a result, more and more family businesses are exploring external solutions according to the fourth study «Familienexterne Nachfolge – mehr als nur eine Notlösung». Sales to investors, management buy-outs or hybrid models are gaining in importance, particularly in technology-intensive sectors.

The biggest challenge: letting go and handing over

At the same time, the studies show just how much the emotional dimension is underestimated. Anyone who has spent decades building up a business is not only handing over assets when they hand it on, but often also their identity, status and influence. “Some people cannot let go of their life’s work,” says Zellweger. Successful entrepreneurs in particular find it difficult to actually hand over operational responsibility. At the same time, successors expect sufficient freedom to implement their own ideas. This conflict characterises many handovers, emphasises the HSG expert on family businesses.
 
Thomas Zellweger therefore speaks of a cultural shift in Swiss family businesses. In the past, succession within the family took place almost automatically. Today, it must be actively sought and shaped. “Successful successions have less to do with legal perfection than with human maturity,” he also told Leader Digital.

Many start too late

Another finding from the study series: many entrepreneurs address succession too late. Although handover processes often take five to ten years, many firms lack long-term planning. The consequences range from family conflicts to distress sales under time pressure. According to the fifth part of the succession study, «Ein komplexer Nachfolgeprozess wird angestossen», the authors therefore recommend a thorough preparation and a phased transition. Hence, the next generation must be able to take on responsibility before the senior generation steps down completely. At the same time, open discussions are needed about roles, expectations and ownership issues. It is particularly important to be flexible when considering different succession scenarios. After all, the desired solution cannot always be implemented. Those who plan early can better assess alternatives and defuse conflicts. Ultimately, successful successions depend on both “hard” and “soft” factors: a clear division of roles, regular communication, and support from the family.

Swiss economy: Succession is not just an SME issue

The series of studies illustrates how central family businesses are and remain to Switzerland as a business location. If succession fails, not only do jobs disappear, but often regional expertise, long-term customer relationships and business continuity as well. “Our studies act as a barometer for the state of Swiss entrepreneurship,” says Zellweger.

After all, the future of many businesses is ultimately decided not primarily by tax issues or contractual arrangements, but by whether families manage to discuss power, responsibility and letting go at the right time.
 
The series of studies is available to download free of charge from the Center for Family Business website. Thomas Zellweger teaches and conducts research as a professor of business administration, with a particular focus on family businesses and entrepreneurship, at the University of St. Gallen (HSG). Marie Klein, Ph.D. and Thibault Huber work at the CfB-HSG and played a key role in the study series, supported by the contributions of UBS co-author Pascal Zumbühl.