The Research On Financing And Pricing In The Management Buyout Of State-run Enterprises

Management Buy-out(MBO) refers to the acquirement of the shares of a company by its management for the purpose of changing the company's ownership structure, power of control structure and asset structure, thereby restructuring the company and winning expected returns on investment. Management buy-out has a positive effect on decreasing agent cost, stimulating incentive of the management, adjusting financial structure effectively and thus promoting the benefit of enterprises. At present, MBO for most state-run enterprises aims to clarify proprietary rights or stimulate the work enthusiasm of the management in China. Starting with Finance, using such modern economic research methods as theoretical analysis and physical analysis, aiming at promoting the practice of state-run enterprises' MBO in China.Based on the analysis of the current situation of MBO for state-run enterprises in China, this thesis puts forward the practical significance on this. Through the analysis, the thesis points out that the financing system and pricing system are of greatest importance in MBO for state-run enterprises while there exist a lot of obstacles in the process. On the basis of the critical review and analysis on the financing system of MBO in the West, Chapter of the thesis discusses the financing arrangement system of MBO in China. As for the methods of financing, private contribution fund and trust fund are two feasible ones, the former of which may become one of the most popular methods in financing. As far as the objects of financing are concerned, the present objects of MBO for state-run enterprises are mainly debt financing and private financing, which have legal problem to some extent. Aiming on this, the thesis points out the necessity of renovating the objects of financing, including debt financing and interests financing, through the reform of financing system. Chapter IV of the thesis probes into the pricing system if MBO. The existing pricing methods in MBO are inequitable and unscientific, and the price transfer is opaque. Concerning the problems on pricing methods, the thesis puts forward a systematic plan, which is based on financing appraisal theory to design the framework of pricing system of MBO, taking the contribution of management into account. The plan is put into practice with the simulated object of Foshan Plastic Share Co. Lmt. As for the methods of price transfer, the thesis points out the necessity of introducing market mechanism to ensure the openness, justice and fairness of the buyout price.