Less than a quarter of high net worth individuals (HNWIs) have put in place wealth succession plans for their family businesses, according to recently published research.
The Middle East Investment Survey produced by Swiss investment manager Lombard Odier found that the majority of HNWIs are aware of the need for effective succession planning but only 24% have put such a plan in place.
The survey also revealed a noticeable difference between younger and older business owners.
More than half (55%) of the older survey respondents have developed a full estate plan, while only 9% of the younger respondents have taken such a step.
There is also a generational disparity regarding the importance of family governance, with two-thirds (66%) of older respondents stating that they have a rigid family governance framework in place, compared to 50% of younger business owners.
Commenting on the findings, Arnaud Leclercq, Partner Holding Privé and Head of New Markets at Lombard Odier, said: “The results of our survey reveal several important factors in the realm of succession planning amongst HNWIs in the Middle East. Chief among them is a consensus that intergenerational wealth transfer is of great importance, yet an absence of estate planning across both older and younger respondents is also present.”
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