Teaching Case: Initial Public Offering and Implementation of a Corporate Governance System in a Family Business

Abstract

Prime Hospitality Group (PHG) is a family-owned company, which was founded 17 years ago by Mr. Milton Albuquerque, with hotels and resorts scattered in different regions of Brazil. Recently, the company decided to go public in BM&FBOVESPA. Conducting an IPO, however, requires many changes in the company’s structure. These changes generate costs and change the view of family members and different stakeholders involved in the process. This case proposes an assessment of the impact caused by the implementation of a corporate governance mechanism after the completion of an IPO of a family-run company.

Keywords

• IPO
• Empresa Familiar
• Governança Corporativa, Caso de Ensino