Single-Family Offices Favoured as Asian Business Owners Plan Wealth Transfers

Asian single-family offices are emerging as a preferred structure for managing wealth following business sales, although succession planning remains a major challenge for wealthy families, according to Julius Baer.

The bank’s Family Barometer survey, covering more than 700 wealth advisers worldwide, found that only 3.5% of professionals advising Asian families considered their clients fully prepared to sell or transfer their businesses.

Differences in business valuation expectations were identified as a leading source of family disagreements that could disrupt transactions.

Globally, more than 80% of respondents cited insufficient family alignment as an obstacle to business sales or transfers.

In Asia, only 8.4% of advisers said younger generations had an equal voice in decisions about managing family wealth after a business sale.

More than 75% reported that wealthy Asian clients preferred establishing a single-family office to oversee their post-exit assets.

The findings underline the importance of family governance and succession preparation before business ownership changes.