Brazilian family businesses confront succession planning gaps

In Brazil, about 90% of firms are family‑owned and they employ roughly 75% of the national workforce. A recent survey of 333 small and medium enterprises (annual revenue R$ 1‑60 million) found that 91% do not have a structured plan for leadership transition, and only 30% of family firms historically reach a third generation. The period between 2025 and 2030 is expected to see the largest wave of generational transfers in the country’s recent history.

Meanwhile, the Superior Tribunal de Justiça (STJ) clarified that an incapacitated person can hold shares in a family holding, provided three safeguards are met: the incapacitated individual must not take part in management, the capital must be fully paid, and the person must be represented or assisted legally. The ruling underscores the need for precise drafting of shareholders’ agreements and operating rules to protect vulnerable family members while preserving the business.

Experts stress that effective succession requires early governance structures, clear identification of potential heirs (whether family or non‑family), and thorough legal, tax, and corporate planning to avoid disputes and ensure continuity.