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  • October 2020 (Revised July 2023)
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UCK Partners: Gong Cha

By: Victoria Ivashina and Sangyun Lee
  • Format:Print
  • | Language:English
  • | Pages:18
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Abstract

In the Spring of 2017, Soomin Kim, Founding Partner of UCK Partners, and his team were debating the potential exit of UCK Partner’s investment in Gong Cha Korea, the sole local franchisor of the premium milk tea brand that they proprietarily sourced three years ago. Since acquiring Gong Cha Korea in 2014, UCK Partners sought to transform what was an unorganized start-up into an established business by professionalizing its management and operations, expanding into untapped overseas markets, and even acquiring the master franchisor of the Gong Cha global business. In early 2017, however, Gong Cha Korea was showing mixed signals in terms of operational and financial performance when UCK Partners received a soft bid for the company from a potential financial buyer. This bid offered an early exit opportunity at a modest return. Investment Committee members were divided. Several factors concerning value-add initiative were considered in evaluating this decision. What made it more complicated was that Gong Cha Korea was the first and largest deal of UCK Partners. With these strategic considerations in mind, Soomin had to decide which path to take on his firm’s biggest deal to date—should he pursue an early exit with modest yet certain returns or risk waiting in hopes of realizing the longer-term full potential of transformation?

Keywords

Exit; Strategic Decision Making; Private Equity; Investment; Strategy; Investment Return; Decision Making; Bids and Bidding

Citation

Ivashina, Victoria, and Sangyun Lee. "UCK Partners: Gong Cha." Harvard Business School Case 221-040, October 2020. (Revised July 2023.)
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About The Author

Victoria Ivashina

Finance
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Related Work

    • October 2020 (Revised July 2023)
    • Faculty Research

    UCK Partners: Gong Cha

    By: Victoria Ivashina and Sangyun Lee
Related Work
  • UCK Partners: Gong Cha By: Victoria Ivashina and Sangyun Lee
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