By Cristian Anastasiu, Excendio Advisors
Are most IT services and software businesses really “family businesses”? Or even close to being one?
That question was triggered by a recent event I attended featuring William Clay Ford Jr. and his daughter Alexandra Ford English of Ford Motor Company, where they spoke about what it means to build and sustain a family business across generations.
It made me think about the IT companies I work with every day.
Most IT services and software businesses don’t pass from parent to child the way traditional family businesses do.
Not because they’re less valuable.
But because they’re fundamentally different.
Why?
1) The work doesn’t transfer generationally
In a manufacturing shop, restaurant, or construction firm, kids can grow up in the business – learning by osmosis.
In IT:
• Skills are specialized and constantly evolving (cloud, cybersecurity, AI)
• What the founder built 20 years ago often isn’t what the business is today
• The learning curve is formal, not just experiential
Result: The next generation doesn’t naturally “step into it.”
2) Founders don’t want to force it
I’ve heard more than one founder say:
“I care deeply about my kids… I’m just not sure I want them to own an IT business.”
Many founders:
• Built everything from scratch
• Value independence and choice
So unlike legacy industries, there’s less expectation of succession – and more emphasis on freedom.
3) The next generation has more options, not fewer
Children of IT founders often:
• Have strong education and broader exposure
• Pursue careers in finance, product, startups – or entirely different paths
Ironically, the success of the business creates optionality, not obligation.
4) Value is in systems, not family continuity
Modern IT businesses are:
• Process-driven (SLAs, automation, recurring revenue)
• Scalable without family involvement
• Often built with a future transaction in mind
They behave less like family institutions—and more like transferable, high-performing assets.
5) Professionalization replaces family roles
As companies grow:
• Professional leaders step in (CEO, CRO, CTO)
• Buyers (PE and strategics) expect it
Even when family is involved, they’re competing on merit—not legacy.
6) Liquidity often outweighs legacy
When founders see:
• Strong valuations
• Deep buyer demand
• Life-changing liquidity
The decision often becomes clear:
“Sell at the right time” vs. “pass it down.”
7) Timing rarely aligns
A subtle but real issue:
• Founder is ready to exit at 50 – 65
• Children are 15 – 20 – 35 – still building their own path
The windows simply don’t match.
With the pace of change accelerating in IT, I don’t expect this dynamic to shift meaningfully.
And yet – there are exceptional cases where second or even third generations step in and thrive.
But they’re the exception, not the rule.
A better question for IT founders might be this:
If your business isn’t meant to be passed down… what is it meant to become?
For many, the answer isn’t legacy through ownership.
It’s legacy through outcome.
Through timing.
Through the decision to turn years of work into something that changes your life—and your family’s future – on your terms.