For family-business owners, separating business and family objectives can help better support the business, according to a new report published by the professional services firm Rothstein Kass.

The report, When is a Family Business Not a Family Business, looks at the different strategies pursued by “business-focused” and “family-focused” entities, based on the responses of 419 family-business owners during the first quarter of 2011.

Family-focused owners are more likely to be considering a sale of the business, with 53 per cent considering this over the next three-to-five years, compared to just 38 per cent of business-focused owners. However, family-focused owners are much less likely to be taking steps to mitigate tax consequences of a sale (10 per cent versus 58 per cent), according to the survey.

The majority of business owners, regardless of their focus, find that managing the business places a strain on their families, with 72 per cent saying this is the case. But the degree to which family members are involved with the process varies. A majority (60 per cent) of family-focused owners include their relatives compared to less than 5 per cent of business-focused owners.

“Many suggested that family discord was both a motivation for considering a sale and one of the concerns most likely to derail the process. At the same time, we encountered a number of businesses that were less affected by family strife due to their unwavering focus on enterprise management,” said Tom Angell, principal-in-charge of the Rothstein Kass Private Equity Practice.

Meanwhile, those business owners identified as being highly focused on their enterprises, reported higher levels of “centeredness” and personal satisfaction, according to Rothstein Kass.

And being centered correlates with a higher net worth, the report says, with these individuals reporting an average net worth nearly five times greater ($4.9 million) than their less-centered counterparts ($1 million).

“Isolating legitimate business objectives from family issues and other outside distractions better positions the enterprise to support long-term objectives. The benefits of this strategy are apparent throughout the life span of the business, and can support a more orderly and profitable sale,” added Angell.

Another finding of the research was that over 40 per cent of family businesses “are so only in name,” said Angell, “with family members not actively involved in managing the business” in such cases.

Survey respondents were required to serve as a senior officer at the family business and on the company’s board of directors, according to Rothstein Kass. The businesses were privately-held, first-generation entities with a single family owning at least a 70 per cent stake. Around 18 per cent of participants report sales between $10 and $30 million, and slightly more than 50 per cent indicate sales between $30 and $100 million.