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Case Study

Zhejiang Hisoar Pharmaceutical

By Denise H. Kenyon-Rouvinez and Nan Li

4 pages

November 2015

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Reference: IMD-7-1664

In 2006, after developing his firm for 40 years, Bangpeng, the founder of Zhejiang Hisoar Pharmaceutical turned it into a public company. He remained at its head until 2010 when, for health reasons, he stepped down and sold his remaining share at 50% of the market price to his still inexperienced son, Yuhong, making him the controlling owner. During the next few years, the company suffered from unfavorable market conditions and new regulatory hurdles eventually forcing Yuhong to resign as chairman and sell his share.

Learning Objective

This case sets the scene for a discussion on the pros and cons of taking a family business public. It also covers issues related to family succession, the next generation, family values and ethics.

Keywords

Family Business, Family Values, Family Succession, Generational Transition, Public Company

Settings

Asia, China
Zhejiang Hisoar Pharmaceutical, Manufacturing, Chemicals, Healthcare, Pharmaceuticals
2006-2014

Type

Published Sources

Available Languages

English

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