ABSTRACT In Taiwan, the private sector has played an important role in the development of the contemporary economy. Most of these companies are family-owned and are facing the challenge to transform themselves into professionally run corporate families because of the competition brought forth by the globalization of the world economy. The San-Shing Company has been a leader in the fastener industry and served as a good model of successful transformation from a family-owned company into a corporate family. Our study shows this success can be attributed to the following reasons. First, a family-owned company¡¦ financial crisis serves as a catalyst for transformation. Next, the role of the management team is critical. The team must succeed in securing the financial support while at the time severe the influence of the family owners. It team must also manage to maintain a high level of employee royalty. Finally, a strong support from the banks is necessary to provide not only financial support but also advices to the transformation.