On The Studying Of Chinese MBO Financing Problems

Since 2000, the MBO (Management Buy-outs) has been adopted extensively as a kind of brand-new reform way. MBO plays very important roles in adjusting state economic structure, optimizing state asset disposition, reducing agency cost, accelerating system reform of small and medium-sized enterprises, arousing the enthusiasm of staff and improving managerial skill. But because of the restraint of our financial environment and the flaw of Chinese exterior market, in the course of MBO financing, especially in financing mechanism, there are a lot of problems. Therefore, there are important realistic meanings on studying MBO financial problems.Under our country's special economic surroundings, the thesis will study the MBO financing that is the MBO's key problem. Firstly, on the bases of analyzing the MBO financing of the small and medium-sized enterprises, this article puts to use modern financing theory to study MBO financing.Secondly, the article discusses the MBO financing's basic situation in our country. On analyzing the Sources of funds and Repaying risk, the article considers the main body of finance is illegal, and after finishing the MBO, the adverse selection and the moral hazard can't be supervised efficiently. Its essential factors are the excessive debt, the rigid regulation and the immature financing environment.Thirdly, the practice of financing theory indicates when the difference of financing cost and financing way's feasibility exist, different financing patterns will occur. Consequently, different financing models produce different financing efficiency. the paper emphasizes two efficient factors, namely financing efficiency and governing efficiency, and the article holds they are the basic causes of different financing patterns.Finally, through the above analysis and study, the article establishes sound MBO financing model, that is to say: Trust Financing, MBO Funds and Bank Loan.