Study On Purchasing Price Of Management Buyouts In Chinese Listed Companies

Management Buyouts(MBO)does good to the adjustment of enterprises' property structure. Without any doubt it has significant meaning in both theory and practice to the listed companies in our country, which are eager to clear property rights and reduce state's stake. But when MBO executed in Chinese listed companies, the valuation of target share has been a hot topic. Though summarizing the practical experience of foreign listed companies and analyzing the characteristics of MBO in China, The paper offers two opinions to solve the Pricing method of MBO. Firstly, Pricing model of MBO should be based on the intrinsic value of enterprise and combine the concrete situation in our country with thinking of managements' historical contributions and the listed company's rare value of resources. Secondly, We should change the current model that the government is dominated in the negotiation between government and management of target enterprises based on the net assets value of unilateral enterprises evaluated by intermediary organs. We should let the pricing model of MBO determined by market, found a system concluding government, trading market of property right, institutions of property assessment, supervisory organs and purchasers which can make government undertake macroeconomic control, institutions of property assessment evaluate independently, supervisory organs supervise duteously, several purchasers bid for the price.