NEW YORK — Oct. 30, 2025 — Private business owners are placing renewed focus on passing down their wealth and businesses. However, new research from Brown Brothers Harriman (BBH) reveals that many owners struggle with when to tell the next generation about their plans and how best to prepare them. The survey highlights gaps in succession planning, mixed confidence in next-gen readiness, and continued emphasis on growth, even as owners reconsider dividend policies and forego equity to maintain business growth rates.

“Succession planning remains one of the biggest vulnerabilities for private businesses, and a large part of that often stems from worries around successor readiness. Owners may know who of the next generation they’d like to take over, but how can they know when the next generation is ready?” said Kathryn George, a partner of BBH. “Like estate plans, sharing an ownership transition plan can happen through several age-appropriate conversations about the business – its values, legacy, and mission – over time.”

Key themes from the survey include:

Wealth transfer without a roadmap

• Nearly half (49%) of owners believe the next generation is only “somewhat prepared” to manage wealth, with 40% saying they are unprepared.
• Owners hesitate to share details of their wealth, citing concerns over entitlement and readiness.
• This lack of transparency underscores the need for better communication and next-gen education.

Why succession planning defines business continuity

• Only 46% of respondents have a formal succession plan in progress, while 30% have none.
• Owners identify leadership, sustaining values, and innovation as their biggest succession challenges.
• A “skip-generation” trend is emerging, with some owners considering transfers that bypass the next generation of successors in favor of the generation that follows.

The private business owner's growth dilemma

• Growing the business is owners’ top capital priority, with 77.5% of owners ranking it above receiving dividends or maintaining all of their equity to maximize growth. However, ownership groups report uneven alignment on their long-term capital strategy.
• Many are considering outside capital, from debt to minority equity to finance ownership transitions.
• Dividend policies are complex: while many businesses pay annual dividends, owners question whether current formulas are sustainable given the dynamics of their businesses.

As owners work to grow their businesses, prepare successors, and transfer wealth responsibly, aligning reinvestment and dividend strategies has become a key part of ensuring both continuity and growth across generations.

“There are numerous ways to set dividend policies – not a one-size-fits- all formula,” said Ben Persofsky, managing director and head of the BBH Center for Family Business. “Ultimately, a thoughtful dividend strategy not only rewards shareholders, but also safeguards the company’s ability to reinvest and grow sustainably.”

“At our recent Owner to Owner Summit, we heard from business owners that growth isn’t just an opportunity – it’s a strategic imperative," said Tom Davis, Partner and Head of BBH Multi-Family Office. "Durable growth gives owners greater control, more options for their future, and the ability to shape the legacy they want for their companies and families."

The full survey report is available here.

About Brown Brothers Harriman

Founded in 1818, we understand first-hand what it takes to steward an institution for the long term. We bring that expertise when helping clients create, grow, and preserve their wealth for generations. As a private partnership, we are uniquely built to put clients first and create success that lasts.

Today, BBH is the trusted and preferred advisor and investor for private businesses and their owners, wealthy families, and sophisticated institutional investors. Through our Capital Partners line of business, we offer multi-family office solutions, investment management, private equity, and corporate advisory and banking services.

We are known for our collaborative, high-integrity, client-first approach where we strive to exceed expectations by helping our clients achieve their definition of success.

Media Contact

bbh@inkhouse.com

Methodology
This survey was conducted by MLR Media LLC, via an email invitation and online survey in July and August of 2025, and drew 491 responses. Respondents were drawn from the family- owned and privately-owned company subscriber lists of MLR Media, Inc. The sampling variation for this survey indicates a margin of error of ±4.4% at a 95% confidence level.