Family businesses open to 'real risk' as most have no succession plan

Just one in three are optimistic about their business over the coming year

Launching ifac’s inaugural Family Business Report were John Donoghue, ifac CEO; Mary Foley, ifac client and owner of Pat Foley Transport Ltd, Kilkenny; James Farrell, Head of SME at ifac; and Pat Foley, ifac client and owner of Pat Foley Transport Ltd.

Most Irish family businesses have no succession plan in place, despite many owners having most of their personal wealth tied up in their business as they approach retirement, according to a new report.

The inaugural ifac Family Business Report, which looked at challenges and opportunities facing Irish family businesses in 2026, also found that one in three businesses experienced family disputes that affected their business decision-making. The report was launched on Thursday and highlights the exposure faced by many Irish family businesses.

It found that over six in 10 (61%) of family businesses have no succession plan in place, while 77% say their personal wealth is entirely or mostly dependent on the business. Just one in three family businesses are optimistic about their business over the coming year.

“A huge number of family business owners have most of their personal wealth tied up in the business, yet many still do not have a clear succession or exit plan in place. That creates real risk, not just for the owner, but for the wider family and the long-term future of the business itself," said ifac head of SME, James Farrell. "Conversations around succession are often difficult because these businesses are deeply personal. In many cases, they represent decades of work and sacrifice, but delaying those discussions usually limits options later.

“The businesses that tend to transition most successfully are the ones that start planning earlier, put proper structures in place, and take a long-term view of the future."

Some 44% of family businesses who responded did not currently have succession planning on their agenda at all, while 2 in 5 business owners would consider selling their business within the next five years. Only one in three family businesses said they are optimistic about performance over the next 12 months, with profitability and rising costs identified as the biggest challenges. 

Two in three businesses plan to maintain current investment levels, while three-quarters expect no change in employee numbers over the next 12 months. 

The report also highlights a divide on using AI in their business. One in three businesses believes AI will improve competitiveness, but more than half expect it to have no real impact on their business over the next year. Cost was identified as the biggest barrier to digital transformation. One in 5 expect to reduce job numbers in the next 12 months as a result of AI. Interestingly, 84% of respondents said they would prefer industry experience over AI skills when hiring.