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The paradox of the long-term future of French family businesses: a valued yet threatened model
A qualitative study conducted by Lombard Odier and HEC Paris Junior Conseil
key takeaways.
69% of surveyed business leaders consider family identity a competitive advantage and 60% wish to keep the business within the family
However, fewer than one in two are confident that the next generation will take over
This paradox is explained by several factors: 68% of next-generation members express a desire to pursue a different career path, while only 39% of families have a complete succession plan.
In France, family businesses account for nearly 65% of GDP and approximately 70% of jobs. Deeply rooted in their regions, they create employment, transmit know-how, and actively contribute to the vitality of local economies. However, only 14–20% are actually passed on within the family, compared with over 50% in Germany and 60% in Italy. This gap illustrates the complexity of a transition that goes far beyond financial considerations.
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To better understand the dynamics behind family business transitions, whether successful or uncertain, Lombard Odier France conducted the study “Family businesses: the challenge of long-term continuity” in collaboration with HEC Paris students. This qualitative survey, carried out between June and September 2025, is based on 85 in-depth interviews with leaders and members of French family businesses across various sectors and regions.
Edouard de Saint Pierre, CEO of Lombard Odier France, comments: “The testimonies collected reveal a clear reality: intra-family business transmission is full of paradoxes. Entrepreneurs trust the next generation, yet many of the latter group wish to take a different path; exemplary operational management contrasts with incomplete and often informal succession planning. Our mission is to support these families in preparing well thought-out, long-term transitions capable of standing the test of generations.”
Our mission is to support these families in preparing well thought-out, long-term transitions capable of standing the test of generations Edouard de Saint Pierre, CEO of Lombard Odier France
related content.
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A pillar of the French economy facing a generational shift
With an ageing population, one in four family SME or mid-sized company leaders was already over 60 in 2023. More than half of French family businesses will face a succession event within the next decade. This is no longer a theoretical matter – it is raised at every family council and every strategic committee.
The study reveals a strong attachment among leaders to family continuity. A large majority express a desire to pass the business on to the next generation, and 82% say they trust its ability to maintain and develop the entrepreneurial project.
Yet fewer than one in two currently believe a next-generation takeover is certain. Intentions clash with shifting aspirations: the desire to pursue a different professional path is by far the primary reason cited (68%) for why succession might not occur within the family. Internal conflicts or strategic disagreements represent only a marginal share of the issue.
Succession is no longer seen as a given – it must be built through dialogue between generations. This highlights the need for clear, constructive discussion spaces so that succession becomes a shared choice rather than an inherited obligation.
Strong asset structuring, but limited succession formalisation
The family businesses surveyed stand out for their robust tax, legal, and wealth structuring. 83% have already separated business and personal assets, and 76% have implemented legal mechanisms to protect the company (Dutreil pacts, dismemberments, transmission structures).
However, this operational maturity contrasts sharply with succession preparation: only 39% of families have a complete plan, and 35% have not formalised anything at all. This reflects a paradox: family businesses excel in operational and asset management but address the human and relational dimensions of succession much later.
The study also highlights the importance of family governance in ensuring long-term continuity of the entrepreneurial project. While 81% of leaders recognise the value of a structured framework, fewer than half of families have clearly formalised governance mechanisms.
Beyond legal and wealth-related aspects, the study emphasises the deeply human dimension of succession. Trust, intergenerational dialogue and shared values emerge as key drivers of successful transitions. A family charter, family council, or mechanisms for progressively integrating younger generations can serve as essential tools to strengthen cohesion and prepare continuity.
For Lombard Odier – a family-run investment house passed on to the seventh generation – supporting entrepreneurs in their succession involves both structuring wealth mechanisms and fostering the conditions for lasting family dialogue.
Xavier Bonna, Managing Partner of the Lombard Odier Group, comments: “Supporting entrepreneurs means understanding their history and their vision. The transmission of a family business goes far beyond financial considerations: it touches on a family’s identity, values and long-term future. Our role is to help families turn their desire to transmit into a solid and enduring legacy for future generations.”
Our role is to help families turn their desire to transmit into a solid and enduring legacy for future generations Xavier Bonna, Managing Partner of the Lombard Odier Group
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The paradox of the long-term future of French family businesses: a valued yet threatened model
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