China's Family Businesses Sell Out to Private Equity

Chinese entrepreneurs facing the twin challenges of succession and a slowing economy are becoming more willing to cede majority ownership to buyout firms. Many small business owners have never had to deal with the need to cut costs or implement sweeping changes, said Weiwen Han, the co-leader of Bain & Company's Private Equity practice in Greater China. "It's about cost reduction, operational efficiency, changing the business model and transforming themselves. They've never done it."