Reflection On The Practice Of Managerial Buyout In The Chinese Minor Enterprises Strypped-down

The development and performance of MBO in China is not so perfect standard, but our current State Situations have Provided MBO with some advantages for its nation-wide development and a few typical examples. In this article, on a combination of practice and theory basis but with an emphasis in practice, we have summarized a sery of general modles and methods fit the operating of MBO for our enterprises. It compares the background of MBO's birth with our current economic environment to generalize the natures of MBO, on which basis, more analyses is given in ways of companies' selection of MBO operating, confirmation of transfer prices, control of financing scale, models of general operating and risks of buyout. Among them, we center on the confirmation of fair transfer prices and scientific & moderate financing, and then put forward to the ideas of confirming access prices comprehensively and finalize the transfer prices by markets. In addition, we focus on how to confirm moderate financing amount, increase sources of mixmizing capitals, and try to explain them by formulas. Finally, we pay much attention to the performance and positioning of the Government in MBO reforms. With the analysis of the whole article, we get the conclusion that as a systematic arrangement helpful to low the agency costs, managerial buyout is very important for stationed holding companies which always lack owners. Futhermore, managerial buyout is also valuable for the enterprises which grow up from managerial buyout to listed companies to promote equity reforms, perfect their agreements. Besides, it still does good to the equity transfers of plenty of collective enterprises and township enterprises.