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South Beauty (South Beauty Failure Case Study)
South Beauty

1, South Beauty introduced capital, Zhang Lan is in the ascendant 2, South Beauty does not understand the capital of the set, buried the hidden dangers 3, the time is also fate

Today, Wang Xiaofei and Big S divorce news spread all over the network, melon masses always have to ask a why

South Beauty

? There is a view that it is because of the decline of Wang Xiaofei's career, now Wang Xiaofei is no longer the same Wang Xiaofei when they were married.

The reason for the divorce is a personal matter, it is difficult for outsiders to know, but today's Wang Xiaofei is no longer the same Wang Xiaofei when they got married, in November 2010, the two registered marriage in Beijing, at this time, Wang Xiaofei can be said to be the peak of his life, because his mother Zhang Lan founded the enterprise South Beauty is in the ascendant, valued at billions of dollars, and is seeking listing, once the listing is successful, the company will be the first to be listed on the Internet. Once the listing is successful, Zhang Lan and Wang Xiaofei's value will skyrocket.

At that time, Das was only 34 years old, the most attractive age of women, and Wang Xiaofei was the young proprietor of a well-known restaurant company, so who says it's not a golden opportunity

South Beauty

? If South Beauty had developed and gone public as expected, then maybe it wouldn't have ended up with today's divorce between Big S and Wang Xiaofei.

It's just that the world is unpredictable, South Beauty failed to bet on the listing after introducing capital, and founder Zhang Lan not only lost control of the company, but was also gradually kicked out of the board of directors, and Faye Wang also helped his mother's efforts, but ultimately left the board of directors, and Faye Wang is no longer the young proprietor of South Beauty, so how did Zhang Lan lose control of South Beauty? How did Zhang Lan lose control of South Beauty and how did Wang Xiaofei cease to be the minority owner of South Beauty? This article is a review from a capital perspective.

China hosted the Olympic Games in 2008, which was a great year for the country, and it was also an extremely important year for Wang Xiaofei and Zhang Lan. China's economy is developing at a high speed, and the food and beverage market is developing rapidly, which is the wind mouth of the food and beverage enterprises at the moment, and South Beauty is exactly the most dazzling one above the wind mouth.

Such a dazzling enterprise, so domineering and not lose flavor boss Zhang Lan more South Beauty added a touch of beautiful color, and this, was then the most well-known capital in the eyes of the CDH investment was the country's well-known PE investment institutions, Jingdong, 360, Belle, Midea, Chain Home and so on are its investment cases.

Wang Gongquan, the person in charge of CDH, was very optimistic about South Beauty, and Zhang Lan, the founder of the company, had a good conversation at first sight, and it was said that the investment intention was set at that time, and Zhang Lan was very trusting, and the contract was signed very soon.

The CDH invested 200 million to South Beauty to get 10.53% of the shares of South Beauty, and the valuation of South Beauty at that time was around 2 billion dollars, knowing that it was 2008, when the house price in Beijing was only 10,000, and the sales of Jingdong was only 1.3 billion dollars in that year.

So now you know how attractive Wang Xiaofei was as the young proprietor of South Beauty at that time, coupled with his handsome appearance, he was simply the best spokesman for the rich and handsome, and another actress Zhang Yuqi also had a bittersweet love.

The article covers all the characters who are "popular", and there are many stories about Wang Gongquan, the head of CDH, who was one of Vantone's six gentlemen, as well as Feng Lun and Pan Shiyi, who have been prominent figures in the real estate field for many years.

But the most important label on Wang Gongquan's body is not Vantone Six Gentlemen, but an "elopement" incident that happened in 2011. On May 16, 2011, Wang Gongquan posted a microblog on Weibo that changed his fate

South Beauty

"Dear friends and relatives, colleagues, I have given up everything and eloped with Wang Qin. Thank you for your care and help over the years, and I wish you all happiness! I can't face your expectations and trust, and I can't explain to you, and I'm sorry, so I'm leaving without saying goodbye. Kowtow and ask for forgiveness! Gongquan bowed.

A private matter of elopement has become a "public matter", which can be seen that Wang Gongquan is a person of temperament, but also a man of the world.

Back to business, South Beauty.

CDH invested 200 million in South Beauty, which is originally a good thing, but it has buried hidden dangers. There are many terms and conditions that limit the investment, and there is an important betting clause, which is divided into three steps:

Firstly, the share repurchase clause: If it is not due to the reason of CDH, which caused the South Beauty to fail to be listed in the market at the end of 2012 or the change of the actual controller of the company, CDH has the right to withdraw from the company. CDH has the right to withdraw.

This clause is the starting point of the bet, the bet is to be listed by the end of 2012, after all, there are still four years, at that time, the development of the enterprise momentum, Zhang Lan is naturally full of confidence, but the capital is not a charity, in the protection of their own interests in the full capacity.

Second, the collateral sale clause: If CDH agrees to sell or liquidate the company, Zhang Lan should agree to the deal and sell her shares at the same price and terms.

This clause is the continuation of the first clause, the capital invested 200 million is for more return, and listing is the way to realize the return to exit, the first clause is to bet on the listing, the listing is unsuccessful, then the capital has the right to exit; the second clause is immediately after that if the capital exits, the major shareholder Zhang Lan must agree, and at the same price and conditions to sell its shares. With this clause the majority shareholder Zhang Lan loses the initiative.

Third, the liquidation priority clause: CDH and Zhang Lan sell their shares together, and the money received from the sale of shares should be prioritized to ensure CDH's 2 times return.

Now we understand why there is a second clause, it is to meet the realization of the capital finally get 2 times return, now we can understand in those years Zhang Lan in order to list how crazy it, in order to list even nationality change, but traveled all over the country and abroad have not been able to get a ticket to the market, and ultimately bet on the failure!

In fact, many entrepreneurs are overly optimistic, magnifying their own abilities and belittling the changes in the environment, and doing business is especially prudent, and you can't take chances.

From the general environment, 2008 was the time when the catering industry was in great development, and the whole industry was very good, especially South Beauty, which is a high-end catering company, and it was not a problem to go public originally, but the problem is that with the severe crackdown on public spending and drinking, which has had a significant impact on the high-end catering.

Zhang Lan's optimism is of course justified, as Xiang Yuexiang, also a high-end restaurant, was successfully listed on the A-share market in 2009, which has naturally become Zhang Lan's goal and role model.

But the timing is not the same, as the restrictions on public spending and drinking have greatly affected the high-end restaurant business, and the tightening of the listing of restaurant companies is like the tightening of real estate funds and the restrictions on the education industry, which is a make-or-break situation for the companies.

Time quickly came to the end of 2012, South Beauty also failed to realize the listing, only in accordance with the contract, CDH exit, Zhang Lan also followed the sale of some shares, Zhang Lan lost control of South Beauty.

In May 2010, Wang Xiaofei became a director of South Beauty and entered the board of directors of South Beauty at the age of 29, and six months later, he and Big S registered to get married;

January 2015, South Beauty's legal representative was changed from Zhang Lan to Wang Xiaofei;

March 2015, Wang Xiaofei also ceased to be South Beauty's legal representative;

May 2015 month, Wang Xiaofei withdrew from the board of directors and ceased to be a director of South Beauty;

August 2018, Zhang Lan withdrew from the board of directors and ceased to be a director of South Beauty.

So far, Zhang Lan and Wang Xiaofei, mother and son, have both withdrawn from the board of directors, completely out of the game, and Wang Xiaofei is no longer the South Beauty minority owner.

If South Beauty today is still the scenery when they got married, then perhaps the relationship between the two couples will be different, but the world is not so much if, in the end, only results, the world is also difficult to buy the early to know, look at the past, remembering the past, more is the hope of borrowing from the past to the present, so as to avoid repeating the same mistakes, step in the footsteps of the dust of others. Look at the history of the development of various enterprises, this phenomenon is endless. Responsibility: