Abstract: This paper divides the intergeneration succession of family business into three phases, including Involvement, Co-management, and Takeover, then researches the performance of intergenerational succession and strategic transformation driven by the 2nd generation. This paper does an empirical study in A-share main market listed family firm of 2010-2012 years and draws the following conclusion. The family firms with the 2nd generation involvement and co-management have a better performance. Because of fewer samples, there is no proof of relationship between takeover and firm performance. Strategic transformation driven by the 2nd generation has a reverse effect on the relationship between the co-management and firm performance. Therefore, the strategic transformation will reduce the original real performance in the co-management phase.