- Succession plans often fail not because of poor planning, but because leaders struggle to relinquish control and trust the next generation.
- The earlier families prepare for a handover, the greater the likelihood of a successful transition.
- Empowering successors to lead independently is essential to building a lasting family legacy.
Letting go is one of the defining challenges of family business succession. In this Building Legacy segment, Prakash Sapra, Chairman and former CEO of Rubis International, and Julius Baer Client Partner Namrata Singh, discuss how families can prepare the next generation for leadership while preserving the legacy they've worked so hard to build.
Letting go: One of the biggest risks to a successful succession
The Sapra family has built a business that spans five generations and multiple continents, evolving from solely distribution to building brands of its own. Yet for Prakash Sapra, longevity is rooted as much in family values as business success. "Whatever we have, it's not mine. It's not his. It's ours," shares Sapra. "As a family, we stay united. Our job is to make sure that there is enough and that we grow what we have for the next generation."
That mindset has shaped the family's approach to succession, treating it as a long-term process built on preparation, trust and shared responsibility. While families can carefully plan a handover, even the best-laid succession plans can unravel if the current generation is not ready to relinquish control. In PwC's 2024 Global NextGen Survey, 55% of respondents said the current generation's ability or readiness to retire was a difficult aspect of succession. And for Julius Baer Client Partner Namrata Singh, this is one of the biggest risks families face. "One of the biggest things that can ruin the entire succession planning is hanging on to power, [and] not empowering the next generation," she says. "Letting go is very important."
Why stepping back can be hard
Many family business leaders have been their company’s main problem solver and decision-maker for decades. They know the clients, the employees, and the history behind every major decision intimately, and the success of the business has long rested on their shoulders.
Over time, that role can extend far beyond the working day, shaping their personal life too. Relationships, routines, and even their sense of self can become deeply connected to the company. As a result, many struggle even with the idea of one day handing over their role.
But stepping back doesn’t necessarily mean leaving the company, or professional life, altogether. Many leaders stay involved as chair or board member, or maintain certain key client relationships, while the next generation runs the business.
Making room before you have to
Whatever shape the business transfer takes, postponing the transition can be costly. If an unexpected health problem or other crisis ends up forcing the issue, the family could lose control of the timing and have to make decisions it hasn’t been able to consider thoroughly. Ideally, preparation should begin 10 to 15 years before the handover is to take place.
That lead time has many benefits. First, it allows a succession plan to be tested. For example, a successor who looks good on paper may turn out not to want the role or not be suited to it, while a different family member could emerge as the stronger candidate. It is much better to discover this years before control changes hands than after the handover has taken place.
Second, it gives successors time to build their skills and experience, as well as confidence in their own judgement. They can do this through formal education and training, by working for the business to gain first-hand experience, or a combination of both. First-hand experience brings the added advantage that it can build credibility with employees and other stakeholders.
From “cover” to independence
That same lead time can also benefit the outgoing leader by giving them a chance to practise letting go before the handover is final. After decades at the helm, Prakash Sapra, stepped back from day-to-day control but remained available to his sons, who were in leadership roles at the company.
“Being there always meant they had cover,” he says. When he relocated to Singapore, however, “that cover was a long way away.”
Sapra was still there when his sons needed him, but he was no longer immediately available. The distance gave them greater autonomy and responsibility, while allowing him to take a step back. It did another important thing too: it gave his sons more scope to fail and learn from their mistakes.
Building a legacy
Many families avoid succession conversations because of fear of conflict, complexity, or simply not knowing where to begin. Yet postponing those discussions can create significant risks for both the family and the business.
The Sapra family's experience highlights a different approach. Succession was treated not as a single event, but as a long-term process shaped by preparation, communication and trust. Their story points to a broader lesson. Legacy is not defined solely by what is passed on, but by how prepared the next generation is to take it forward.