Being part of a family business, I have grown up with many opportunities. One being the potential to one day own and run a business built by my grandfather alongside my father and uncle. As one generation grows older into retirement and the new generation weighs up their future, succession planning is quickly becoming the most pressing challenge in business. Seventy per cent of businesses in Australia are family-run yet only half of these survive to a second generation and even less to a third.

As succession becomes a looming issue, families have to put various steps in place and overcome business and personal related obstacles in order to become family dynasties that last in the business for multiple generations. The succession process within a family business proves the most difficult as this is where personal family problems arise. This story explores some of these issues and the families, including my own, facing them.

Due to many families not preparing for succession early enough, family members are often met with results they weren’t expecting and decisions not going their way, leading to rifts in family relationships. In fact, according to the Grant Thornton business survey in 2025, only 19% of family businesses have a documented succession plan. Listing fear of retirement, financial security and lack of future planning as main reasons delaying the process.

Forging their own path

For many, succeeding the previous generation isn’t what they want, with other passions taking them away from the family business. My brother Zach Ferrari grew up around family menswear business, Ferrari Formalwear, where he started at the age of 12 shining shoes for pocket money during school holidays and working his way through the ranks of retail associate and finished his time at the company as store manager at the age of 24. He has since resigned to pursue his forensics studies at Murdoch University.

“I never really saw myself wanting to take over the business, I never really had motivation to go into it, it was never really a drive of mine,” he says. 

Throughout his time at Ferrari Formalwear, Zach was subject to different treatment. He says during his time in the business, having the last name ‘Ferrari’ came with extra judgement. 

“They’re like, ‘that seems to be quite young to be running a store on your own’. They say, ‘maybe there was a bit of nepotism in that.’” 

Though he says producing results silenced his doubters.

 “As I started putting my own numbers on the board, people started looking at me as more of an employee than just my dad’s son.”

Zach Ferrari admits that growing up around the business helped him get a leadership role at Ferrari Formalwear but is adamant he earned his promotions.  

“I think that how I conducted myself at work is what kind of got me as far as I did. I don’t think nepotism had anything to do with it, even though the rhetoric’s there,” he says.

A pillar to turn to

The Family Business Association (FBA) is the peak body supporting the family business sector. It works with all family businesses within their association by offering family-specific programs and networking opportunities. 

Succession remains a critical process for family businesses to thrive.

“Succession is a long, complicated process and often is not done well. Over the next two decades there is about $4 trillion of wealth that is likely to transfer” says FBA CEO, Cathryn Sayer.

“Many families don’t work on their succession plan early enough which leads to problems.”

To combat this, the FBA provides families with succession and governance courses which aid families in transitioning to the next generation of directorship and succession.

Within these courses, the FBA has developed a system that aims to align the family and the business and foster and mediate open discussions. Preventing small family squabbles from turning into large family feuds, 

“They need to continue to work on their communication with each other, particularly around succession,” says Sayer.

One of the more prevalent issues impacting the succession process of family businesses is the previous generations distrust in leaving their business in the hands of their successors. The FBA have programs put in place to educate future directors.

“Recently we launched an Emerging Leaders Forum Group which is a two-year program, supporting the next generation coming through” says Sayer.

 Owner and managing director of Galvin Engineering, Chris Galvin, places importance on FBA’s networking opportunities.

 “The FBA provides a really good environment for families to share their successes and failures in a safe environment,” he says.

“Families like to mix with families, so we have many events where they engage with each other and learn from each other.”

A blueprint in succession

Galvin Engineering is a family business in Perth that’s been operating for 95 years and spans four generations. It’s an example of a family business doing succession correctly. Initially being named ‘Premier Engineering’ and started by Larry Duff and Albert Gordan in 1920, the Galvin family legacy began with Roy Galvin buying majority shares in the company and incorporating his sons, John, Jim and Tony in 1967, before changing the name to Galvin Engineering Pty Ltd in 1971. 

In 1992, with Jim being the owner of the business, his two sons, Chris and Paul succeeded their father as directors of the company making it a three-generation business. In 2020 with Paul’s son, Tim, becoming an owner after working as the head of IT since 2015, they have entered rare air becoming a four-generation business.

“I always had in the back of my head form an early age that I would join the family business” Tim Galvin says.

“It’s changed my perception on the business significantly, especially decisions that people would make in the business

“Going back five years, I would go, well that’s not my lane, where now I’m an owner, I do care. I’m going to stick my nose into everyone’s business”

Although Tim Galvin always had the goal of succeeding the family business, it wasn’t necessarily the case for Chris Galvin who spent his early adult years as an accountant at KPMG before buying shares in the family company.

“After spending hours scrubbing the factory floor on school holidays, I thought I didn’t want to work here” he says.

“It’s something I almost fell into. But something I love now. It’s funny how life changes.”

With Paul’s son Tom joining the company in 2020 and Chris’ daughter Alex in 2022, there are now three, fourth generation Galvin family members currently working at the company.

The next steps for succession planning

In 2026 the Family Business Association will be launching an education program in family dynamics to help family businesses manage the challenges of succession and communication.

The program aims to guide families through facilitating open, constructive conversations about the future and bridging generational gaps. It will also cover strategies to foster mutual respect, distinguish between legal and family readiness and provide techniques on how to keep discussions productive, enjoyable, engaging and inclusive. Families will learn how to engage family members across generations to align and communicate values.

The purpose of the program is to push business owners to prepare succession plans before it is too late to avoid inciting family feuds.