Research On LBO Models In Different Financial Markets

The merger and acquisition is the inevitable product of the economic development, while the leveraged buyout (LBO) is the inevitable product of the M&A development, under the close cooperation of financial industry, which symbolize the mature of industrial capital and financial capital in pairs。This article is composed under the background that China gradually involves in the global capital market, and that LBO in China gradually develops to the global standards。The author launches analysis, both domestically and internationally。It concludes successful LBO models in home and abroad markets with detailed characters, and makes suggestions to develop feasible domestic LBO models。In order to study LBOs more thoroughly, this article has grasped two major characteristic—leveraged purchase and the guarantee by the target's future income。This article includes each kind of funding channels by different financial institutions and tools, as well as the corresponding market conditions。It makes a comparison between domestic and foreign market conditions and existing leverage models, and feasible LBO models, with conclusion that we do not have typical LBO case in China, because we lack the repayment security by target's future income。Besides, this article introduces the Game Theory to analyze the information asymmetry problem of the capital suppliers and demanders, the core issue derived by the under-developed financial condition in China, by building Game Theory models to find innovative solutions。The main topic includes:1。Detailed introduction about popular M&A models, with basic concepts, categories, operation patterns, characters, and influences。Besides, it concludes foreign LBO developments and rules, make proper ways for future LBOs in China;2。Detailed introduction about LBOs in China, with the development, models and characters。It studies the under-development financial condition in China, covering present situation, favored and un-favored factors, and institutional obstacles, etc。It makes a scenario analysis of LBO models in China;3。Feasible LBO model by comparison of LBO practices in and out of China, and the special financial condition in China。It details in banking, trust and private equity investment as the three feasible funding channels for LBO; and 4。Analysis on trading problems by the information asymmetry problem, which is the core issue derived by the under-developed financial condition in under-development financial markets, by building Game Theory models。It also designs a new LBO model by absorbing the wits of leveraged lease, confirmed by a preliminary feasible study。...