Family Business Advisory Services Market

Family Business Advisory Services Market Analysis, By Service Type (Succession & Transition Planning, Next Generation Coaching, Family Business Policy Development, Family Business Assessment, Others), By End-use Industry (Consumer Markets, Energy & Natural Resources, BFSI, Others), & Region - Global Market Insights 2023-2033

Analysis of Family Business Advisory Services Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Family Business Advisory Services Market Outlook (2023-2033)

The global family business advisory services market is projected to reach a valuation of US$ 589.1 billion in 2033. The market is expected to increase at a CAGR of 5.2% and reach US$ 978 billion by the end of 2033.

  • In the U.S. alone, according to the U.S. Bureau of the Census, from small to Fortune 500 companies, close to 90% of businesses are family-owned, which has laid the foundation for the strong demand for family business advisory services.
  • As per a Study by Grand Valley State University, around 5.5 million businesses in the United States are family-owned. Similarly, Europe accounts for a total of 14 million businesses as family-owned.

Also, as per a study by Ernst & Young Global Limited, global industries observed large capital from private family businesses as compared to both private equity and venture capital enterprises. Additionally, increasing focus of wealthy families on business expansion and incremental rise in globalization are favoring family-owned businesses worldwide.

  • Family business advisory services are expected to grow at a significant pace in the short term owing to an increase in the development of small- and mid-sized family businesses across the world.
  • Growing number of start-ups and rising number of consumer product & services sectors will drive the demand for financial & managerial consultancy services to maintain sustainability and equilibrium between family members and business efficiency.
  • In the long run, growing development of family-owned organizations and surging globalization will drive market growth positively. Financial advisory and audit & assurance services will account for a substantial share of the market.

Financial advisory accounts for a leading share of 24% and is projected to dominate this industry over the next ten years as well.

Report Attributes

Details

Family Business Advisory Services Market Size (2022A)

US$ 560 Billion

Estimated Market Value (2023E)

US$ 589.1 Billion

Forecasted Market Value (2033F)

US$ 978 Billion

Global Market Growth Rate (2023-2033)

~5.2% CAGR

North America Market Share (2022)

~37%

East Asia Market Growth Rate (2023-2033)

~7.1% CAGR

United States Market Growth Rate (2023-2033)

~5.2% CAGR

Key Companies Profiled

  • Baker Tilly US, LLP
  • Bessemer Trust
  • Citrin Cooperman
  • Deloitte
  • EY
  • Grant Thornton LLP
  • Johnston Carmichael
  • KPMG
  • Mazars
  • MCM CPA
  • Mercer Capital
  • Moore Global
  • PwC
  • RSM US LLP
  • The Family Business Consulting Group
  • UHY Hacker Young

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Factors Shaping the Path of Family Businesses Advisory Services Industry

“Increase in Number of Start-ups Worldwide”

Substantial rise in start-ups across the world is majorly driving market growth. Entrepreneurs with new ideas and innovation are taking initiatives to commence a start-up.

  • As per the study by Family Firm Institute, 85% of start-ups worldwide are entrenched with family money.

Once these start-ups are established with good financials and a consumer base, they are passed on and converted into a family-owned business. With the expansion of start-ups, continuous development in technology, and change in the business environment, demand for family business advisory services is expected to see significant growth.

  • As per a study by Get2Growth organization, annually, 305 million start-ups are created worldwide every year, out of which, around 10% gain success and convert to an established organization.

With the significant rise in start-ups, the market is expected to see a substantial rise in family business advisory services worldwide.

“High Need to Establish Equilibrium between Business and Family Members”

Family businesses are major contributors to a nation’s growth and make a substantial contribution to social development worldwide. Despite this fact, family-owned businesses are prone to various vulnerabilities. The possibility of discord and dispute among family members is there in all businesses, which can adversely affect the expansion of the business. Therefore, the demand for family business advisory service providers is growing, and these specialists establish an equilibrium between family members and business operations.

In this scenario, business and family governance consulting is highly in demand to articulate frameworks that separate organizations from ownership to channel issues relevant to family members and organizations. Also, founders deal with the traditional approach of working in a business, whereas, the new generation demands advanced technology and upgradation. In this case, a next-generation transition is efficiently offered by family business advisory service providers to meet individual members’ goals in a business.

“Meeting High Expectations of Clients – A Challenge”

Family businesses come with certain instabilities regarding the business operation, change in the leading person with generations, and lack of skills or experience among other family members.

Disputes among family members and staff result in resentment and issues in business operations and put the family business at risk. Due to this factor, demand for family business advisory services will be limited to a certain extent.

Changes in leading personnel and complexes in the succession planning of the business may lead to a variation in the demand or appointment of advisory firms dealing in family business advisory services, and therefore impede the growth of the market.

Family business advisory services market forecast by Fact.MR

Image is a brief about the estimated global addressable market value of family business advisory services in 2023. Among the end-use industries, the consumer market is expected to hold a leading market share of 30%.

Country-wise Insights

United States to Enjoy Largest Share in Market Development

The United States family business advisory services market is driven by the presence of a large number of family-owned businesses in the country.

  • As per the United States Census Bureau, 90% of businesses are family-owned in the United States.

As family-owned businesses face difficulties in the management of various business operations, these service providers offer various managerial and financial services to these organizations. This has resulted in a significant rise in the demand for family business consultancy in the country.

Similarly, government support for family-owned businesses in the U.S. is another factor driving to the development of family enterprise advisory services. Such businesses are leading contributors to the development of the United States economy.

India to Witness Fast Growth in the Market

The market in India is expected to rise at the highest CAGR of 5.6% over the forecast period. Factors driving to the expansion of the market include increasing development of start-ups and the presence of both, locally and internationally expanded family businesses in the country.

India has leading family-owned businesses such as Reliance Industries and Aditya Birla Group, which are among the twenty largest family businesses in the world. Moreover, the Indian market is highly fragmented with various small- and mid-sized family-owned organizations, which is expected to drive the demand for family business advisory services with the continuous expansion of these organizations.

Moreover, the growing number of start-ups in the country and their further conversion to family businesses is another factor stimulating the family enterprise advisory market in India.

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Category-wise Insights

Financial Advisory Services Account for Huge Market Share

Financial advisory is essential to all kinds of organizations; however, it plays an essential role in family business development. Family businesses should be aware of and carefully analyze specific financial planning opportunities and special planning requirements that family firms and their stakeholders have, as these businesses are leading contributors to the development of economies worldwide.

The consequence of such rigorous planning might imply nothing less than the success or failure of the family firm, and proper planning could produce positive results in terms of wealth preservation, multigenerational business succession, and general family happiness.

With increasing development of small- and mid-sized family-owned businesses worldwide, demand for these services is expected to gain tremendous traction in both developed and developing regions.

Consumer Industry Will Continue to Be Prominent Shareholder

The consumer market comprises vivid sectors, including consumer products, retail, wholesale & distributing, transportation, hospitality & services, and others. Family businesses dealing in these sectors are larger in number worldwide and exhibit significant demand for financial advisories, business consultancies, managerial services, and others.

These businesses are highly prone to disputes regarding finances, decision-making, and the internal management of business operations. Owing to these factors, the demand for family business advisory services is highly lucrative in consumer end-use industries. Moreover, the growing development of this sector in emerging economies, as well as developed economies, is fueling market growth.

Competitive Landscape

Leading providers of family business advisory services are Baker Tilly US, LLP, Bessemer Trust, Citrin Cooperman, Deloitte, EY, Grant Thornton LLP, Johnston Carmichael, KPMG, Mazars, MCM CPA, Mercer Capital, Moore Global, PwC, RSM US LLP, The Family Business Consulting Group, and UHY Hacker Young.

The market comprises various large and small players offering advisory services for family-owned businesses. Key initiatives such as the establishment of family business development centers and the launch of new services are being adopted by market players.

For instance :

  • In August 2022, the leading financial center of the Middle East, Dubai International Financial Centre (DIFC), introduced the Global Family Business & Private Wealth Centre. The initiative is focused and committed to supporting the next generation of the economy.

Fact.MR has provided detailed information about the providers of family business advisory services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of Family Business Advisory Services Industry Research

  • By Service Type :

    • Succession and Transition Planning
    • Next Generation Coaching
    • Family Business Policy Development
    • Family Business Assessment
    • HR Consulting and Assessment
    • Managed Accounting and Family Office Services
    • Business Valuation
    • Audit & Assurance
    • Tax & Legal Services
    • Financial Advisory
    • Transaction Advisory & Restructuring Services
  • By End-use Industry :

    • Consumer Markets
    • Energy and Natural Resources
    • BFSI
    • Government & Public Services
    • Life Science & Healthcare
    • Technology, Media & Telecommunications
    • Real Estate & Construction
    • Environmental, Social and Governance (ESG)
    • Food & Agriculture
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

The global market for family business advisory services is expected to rise at a CAGR of 5.2% through 2033.

North America holds a leading share of 37% of the global market.

The East Asia market is predicted to exhibit the highest CAGR of 7.1% over the decade.

Financial advisory services hold the largest share of 24% in the market.

Family Business Advisory Services Market

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