Research The Case Of MBO In A Enterprise

Management Buy-outs,(MBO)is the management of target(company) pass through the leveraged financing ,completing buying out the company.It has realized the concentration Of ownership and right of administration,So reduces agency cost,motivates and restricts the management.MBO has developed abroad for more than 20 years and shows powerful vitality,It has benefit for buyers and sellers.Buyers(management) can get profit from the raising of companies performance and the underestimated prices, avoiding hostility acquisition,satisfying the needs of carving out business .Seller(shareholder) can reach the purpose of reducing agency cost,motivate and restrict the management,peel off assets and change public-owned departments to private departments. As being related policy and legal regulations enact in our country,more and more enterprises have begun or prepared to begin Management Buy-outs(MBO).As a kind of re-construction of corporation structure,MBO accords with the requirement that the enterprise of our country carries out the reform of property rights in our country,MBO has the purpose of transferring the ownership of the state-owned assets and clearing the ownership of assets,have very strong realistic meaning.In the market of our country,economy is not mature,the condition of un-sound related legal regulations take off,how to develop MBO are the problem of the current solution of urgent need. Property right reform of SOEs in china by the means of MBO mode experience from the MEBO to MBO mode at the beginning of small and medium sized SOEs in small city. It is criticed by public when large and medium listed companies reconstructed by MBO mode .therefore ,It is important to understand the reform in china that we clearly know the MBO process in small and medium company in city. otherwise, we cannot find the problem in reform in china. this paper ,Firstly,introduces the theoretical knowledge of MBO,the domestic and international public listed company's condition of developing MBO as well as the meaning that studied for on the market company's MBO. Secondly, this article presents application of the conclusions and theories of MBA research in the restructuring of an enterprise in the Changjiang River Triangle region, resolving the financing and restructuring issues for that enterprise by combining the resources of banks and trust companies . Thirdly, according to these problem in the process of...