Leadership change in Italian family businesses
Italian family businesses can be credited with a high degree of resilience in an uncertain macroeconomic environment. The AUB Observatory, promoted by AIDAF (Italian Family Business), UniCredit, the AIDAF-EY Chair in Family Business Strategy (Bocconi University), with the support of Angelini Industries, Borsa Italiana, and EY shows that, after the post-pandemic rebound, revenue growth has entered a period of normalization, settling at slightly negative values (-1.2%) in 2024, in line with the slowdown in the economic cycle. Despite this, in the long term, family businesses maintain a structural advantage over non-family businesses, both in terms of cumulative growth and profitability.
These are some of the findings of the AUB Observatory’s 17th report, which monitors all Italian companies with a turnover of at least €20 million, i.e., 23,578 companies, of which 15,568 (66%) are family-owned. The report, edited by Fabio Quarato and Carlo Salvato, was presented yesterday in Milan at the headquarters of Borsa Italiana.
Investments remain strong: in 2024, the fixed assets of family businesses grew by 9.2%, confirming a greater propensity to invest than non-family businesses. Operating profitability, although slightly down compared to 2023, remains above pre-Covid levels, while the financial structure appears solid overall, with low debt and a growing number of companies with a positive net financial position.
It is within this context of economic and financial stability that one of the most significant transformations for the future of the Italian production system is taking place: the acceleration of generational transitions, the evolution of owner families, and the growing use of inter-generational mentoring models.
Increasingly complex owner families
For the first time, the research contains a systematic analysis of the composition of owner families in large Italian family businesses. The data show large and structured families: over 80% have more than one child, often of different genders, with an average of 2.5 potential successors per family. This plurality broadens the pool of the Next Generation, but makes the choice of leader more complex, turning the generational transition from a predominantly demographic event into a true strategic decision-making process.
Generational transitions accelerating
Since 2010, almost two thousand generational transitions have been observed, with a sharp acceleration since 2020. On average, business leadership is transferred when the senior generation is around 75 years old, while successors take over at around 45 years of age, after long periods of mentoring. Carlo Salvato emphasizes: "The Observatory's data show that the Italian family business system has entered a phase of rapid acceleration in generational transitions, as evidenced by the number of transitions recorded since 2020. Based on this trend, our estimates indicate that over a third of family businesses could be involved in a generational transition in the next decade. If we assume the adoption of a best practice of governance—i.e., that the senior generation leaves the leadership of the company to the NextGen at around 70 years of age—the share of companies involved could reach almost 50% in the next ten years."
Mentoring as a lever for continuity and performance
One of the most significant findings concerns the spread of intergenerational mentoring. Today, over a third of generational transitions take place through a structured period of mentoring between the senior and next generations, a proportion that has grown significantly in recent years. In 2024 alone, almost one in two transitions was preceded by a mentoring stage. Companies that adopt this approach achieve better results: higher profitability, more sustained growth, and more stable transitions. In particular, it has been noted that companies that combine Next Generation with external managerial skills perform better.
According to Fabio Quarato, "The increase in the average age of people—and therefore also of entrepreneurs—is profoundly changing the way generational transitions take place in family businesses. The Observatory's data clearly show that succession no longer takes place as a one-off event, but as a process that develops over time. Mentoring interprets this evolution, allowing for generational coexistence that can make the transition more orderly and effective."
Birth order and merit in the choice of successors
Despite the evolution of governance models, the criteria for selecting a successor remain largely traditional: in 70% of cases, leadership is entrusted to the eldest child. However, the analysis shows that succession choices tend to increasingly incorporate elements of merit: the successors selected often have higher levels of education than other potential candidates. When this happens, the positive impact of the generational transition on company performance is significantly greater.
A decisive turning point for the Italian production system
Overall, the 17th edition of the AUB Observatory depicts family capitalism in the midst of a transformation: more aware, more structured, and increasingly focused on managing generational change as a lever for continuity and competitiveness. The challenge in the coming years will be to anticipate and accompany these transitions, valuing the diversity of owner families and investing in mentoring programs that can combine tradition and renewal.
