Study On Management Buy-outs(MBO)

Management Buy-outs (MBO) is very popular in Europe and America. As related policy and legal regulations enact in our country, MBO develops rapidly in recent years. From 1999 when the first MBO case of SiTong company happened to the end of 2002,there are several tens of companies did MBO. However because of some reasons, there are also some problems during our country's MBO. Therefore, doing some research into this field has practical significance. Considering the representative of cases and the availability of data, eight typical companies are selected to be had demonstrative analysis of in this thesis in order to find out problems in china's MBO practice and give some suggestion through the statistic research.This thesis is divided into five parts: preface, the basic theory of MBO, the general situation and experience summary of MBO in foreign countries, the recent situation and problems of MBO in our country, the measures on core problems of MBO and project design. The last two parts are the key points.1, Preface. Introducing simply the meaning of researching on MBO, the present condition of studying on MBO, the frame of studying, the method of studying.2, The basic theory of MBO. Introducing chiefly as follows: the basic concept and characteristics; the motivation of MBO including: improving core business or exiting from the old industry, getting away from control of supervision organization, privating the public department; from the analysis of entrepreneur role, reasonable expects and corporate governance, we can conclude that MBO just a means to max managers and owners 'benefit at a specific situation ; MBO will be helpful in decreasing agent cost, adjusting the structure of company ,and solving the problem of property rights.3 , The general situation and experience summary of MBO in foreign countries. Introducing the general situation of alien MBO by taking Europe, America, Russia and Eastern Europe for example , then summarizing the(MBO)experience of the basic principle of choosing object companies , purchaser of MBO , fixing price of MBO ,and financing of MBO which will be taken as reference to perfect MBO of our country.4, The recent situation and problems of MBO in our country. First circumstance MBO put into practice in our country is analyzed, then according to 8 typical companies that carried out MBO, the author summaries the present situation and characteristics and existing problems of MBO: illegal purchaser, unreasonable price, abnormal finance resource, insufficient information disclosure.5, The countermeasure on core problems of MBO and project design. Aimed at the problems above, some countermeasures are put forward, which covers five parts as follows: combining Discounted Cash Flow with Option Pricing will solve the pricing problem of MBO; privately seeking investment, trust investment and venture investment will be helpful to solve the financing problem of MBO; regulations established by government make sure the information will be reliable, accurate, sufficient, timely; enhanced legal system construction can offer right legal and policy circumstance; based on the solution to these core problems ,a integrate operating program for MBO will be designed.