As time progressed, it was time to pass on the business, now a renowned and key part of the city. A meeting point, packed with moments and memories. After 15 years it was time for one of the two sons to take over.

 
Having seen how much work had to be put in, the long hours, the constant fully booked calendar, both heirs did not envision a continuation. 

The brand and all of its intangible values were at risk of vanishing. Indeed, the pizzeria did sell to someone who tried to keep it running but it did not last long before it had to close due to the big change in management. 

Had the grandpa found the right person outside of the family, perhaps they could have carried on the legacy, name and the wealthy amount of money coming in. 

This is merely one example of what Europe is facing. Hundreds of thousands of small & medium enterprises looking to sell every year, only to find a lack of interest in their passion. 

The EU is aging, and with it a new set of opportunities and difficulties arise, one being successions. 

It's a huge demographic shift that has never been encountered before. For context, by 2050, more than two thirds of the EU Member States are projected to have an old-age dependency ratio above 50.0 %; in other words, they will have less than two persons of working age for every person aged 65 years or more. 

Across Europe, SMEs and family-owned businesses form the backbone of the economy. The European Commission estimates that 480,000 businesses change hands annually, affecting over 2 million jobs. 

Picture a small dot on the European map for every small business, Europe would be bright red. These businesses are 99% of all businesses. Yet a growing number of them face a major challenge: succession. Many heirs are unwilling or unprepared to take over the family enterprise. Why is that?

 1. A More Educated Generation 

The next generation is more educated, exposed to global opportunities, and has access to diverse career paths. Unlike their predecessors, many heirs aren’t financially dependent on the family business, nor do they feel obligated to continue in an industry they don’t resonate with.

2. Changing Family Dynamics
Generational shifts in parent-child relationships have changed the way family businesses operate. Unlike in the past, where ownership was expected to be inherited, modern families place greater emphasis on personal choice, passion, and self-determination.

So how many really do make it? The survival rate is low, only 30% of companies make it to the second generation, 12% to the third, and just 3% to the fourth generation. 

The Solution? Instead of assuming the next generation must take over, family businesses need a flexible approach, one that looks outside of their circle. 

Just like the Pizzeria of Vascotto, had the grandfather found someone who had experience in the line of work, had a similar vision for continuation and shared values for the brand image to continue, perhaps it could have lasted much longer. 

The Cost of Doing Nothing: The Hidden Risk to SMEs

Key Challenges Facing Family Business Succession:

• Unstructured exit planning – Most business owners wait too long to start succession planning.

• Rigid business models – Resistance to digital transformation discourages next-gen involvement.

• Emotional attachment from founders – Many struggle to let go, creating delays.

• Mismatch between buyer and seller – Heirs may want to sell, but finding the right buyer is difficult.

This isn’t just a family issue, it’s a macro-economic challenge. For instance, each year, 40,000 Dutch companies close without a successor, despite a pool of 50,000 potential buyers actively seeking businesses to acquire. The gap isn’t a lack of interest, it’s a lack of a structured and culturally aligned matchmaking process.

Next-Gen: A Key Asset, Not a Threat

Rather than viewing next-gen disinterest as a problem, family businesses must adapt to leverage their skills.

✔ Give them ownership over innovation – Let them modernize operations, integrate AI, or develop digital strategies. 

✔ Offer hybrid ownership structures – Instead of forcing full leadership, create co-ownership models where external CEOs run operations. 

✔ Show them the real value – Many heirs underestimate the financial and strategic advantage of inheriting a stable, revenue-generating business. 

✔ If they’re uninterested, find the right buyer – Some heirs simply don’t want to run the business. Instead of letting it dissolve, a structured exit strategy ensures continuity.

A Smarter Way to Match Sellers & Buyers

Many business owners and heirs struggle to find the right buyer, not just someone with financial capacity, but someone aligned with the business’s culture and vision.

Why does cultural due diligence matter? 70-90% of M&A deals fail due to cultural mismatches. Often neglected or pushed by most brokers who solely focus on financials, end up cutting a deal with loose ends when integration happens. 

Understanding leadership style and values reduces uncertainty in deals. Finding the right successor preserves the business’s legacy while ensuring operational continuity.

Conclusion: Evolution, Not Abandonment

The family business model doesn’t have to die—it just has to evolve. The next-gen isn’t rejecting their legacy; they’re rejecting rigid, outdated structures.

Key Takeaways: 

✔ Family businesses need structured succession planning. 

✔ The next-gen wants innovation, autonomy, and flexibility.

✔ Hybrid models (external leadership + family ownership) can ensure long-term success. 

✔ Matching the right buyer or successor ensures legacy and financial continuity.

The future of family businesses depends not on forcing outdated transitions, but on adapting to new realities. 

The right successor is out there. It’s time to start planning.