Nearly 47% of family business owners are considering selling their company within the next five years, according to new research by business advisory firm Rothstein Kass.
The study, based on a survey of more than 400 family business owners, also highlighted two different approaches to the management of a family firm.
The report distinguishes between business-focused and family-focused owners, with the former being less likely (38%) to consider selling the family business within three to five years than the latter (53%).
In addition, according to the research, while nearly 58% of business-focused owners would take steps to mitigate the taxes from a possible sale, only 10% of family-focused owners would take the same measure.
Over 60% of family-focused business owners think family members have an influence on the company, compared to less than 5% of business-focused owners, the study also found.
"Isolating legitimate business objectives from family issues and other outside distractions better positions the enterprise to support long-term objectives,” said Tom Angell, principal of Rothstein Kass’s private equity division.
“The benefits of this strategy are apparent throughout the lifespan of the business, and can support a more orderly and profitable sale, whether owners ultimately intend to sell to private equity funds, strategic buyers, or transfer the asset to family members,” he added.