The Great Singapore Family Business Transition: Sales Over Succession?
Family businesses make up over 60% of Singapore’s private sector. Traditionally, they’ve been passed from one generation to the next , but that story is changing.
Despite 81% of founders intending to keep businesses in the family, only 45% have succession plans in place. This 36-point “succession gap” is fuelling a wave of strategic sales across industries — from electronics and manufacturing to financial services.
Why is this happening?
- Next-generation leaders are choosing careers in tech, finance, and professional services, not family firms.
- Modernisation pressures — digital transformation, ESG compliance, capital intensity — stretch traditional family business models.
- The rise of Single-Family Offices (SFOs) has reframed ownership: businesses are now viewed as portfolio assets to be optimised, not permanent legacies.
Sector dynamics
- Electronics & manufacturing: High exits, driven by global demand and capital requirements.
- Financial services: Disrupted by fintech and regulation.
- Food & beverage: Strongest family retention, due to cultural and emotional ties.
- Professional services: Remain family-held, thanks to lower capital intensity and relationship-driven models.
Strategic implication
This isn’t a crisis of legacy, but an evolution. Families are reallocating wealth toward higher-growth sectors, fuelling Singapore’s transition to a knowledge-based economy. For advisors, buyers, and policymakers — understanding this shift is essential.
The big question: Is selling sometimes a better way of preserving a legacy than succession?
Our offer to Family Businesses
At Velten Advisors, we collaborate with our corporate advisory partners to assist family businesses in Singapore and across Southeast Asia in navigating critical decisions — whether exploring succession planning or evaluating sale options. The complexity of today's market requires expert guidance to optimise outcomes.
We offer a complimentary consultation to discuss your unique situation and explore the best course of action.
Get In Touch
For more information please contact Michael Velten.
michael@veltenadvisors.com
+6590687547
37 Ann Siang Rd, Singapore 069715
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