Cases Analysis Of Management Buy-out On The Chinese Public Companies

In the past two years, many cases were discovered that the state owned share in the Chinese public companies was sold to the management team of those companies. The background of the Management Buy-out is the strategic decision of the selling State Owned share in the competitive line.Currently it is very important and helpful to launch the MBO project in the Chinese public companies because MBO can help us to solve some urgent issues. There are many state owned companies include the public companies in China, and those companies are operated by management team. The managers were lack of motivation, and the companies were in the situation of 'absence of owner'. Problem is those companies cannot make money.The author, Rick Xia using his knowledge of Strategic Management, Corporate Integration, Management Motivation and Financial Management to analyze the possibility, method and efficiency of the MBO on Chinese public companies. The author studied the cases, and made a report on the highlights, issues and solutions.The author mainly focused the following: What is the target and reason of those companies are willing to launch MBO. How to make sure the transaction is fair. What kind of companies are in the position to launch MBO. What time is suitable to launch MBO. How to calculate the price. How to get money to pay for the state owned share. How to engage the supervision on the companies after MBO.