The Study And Design Of Management Buy-out Scheme For Guangdong Wumingshan Communication Hotel

After analyzing a state-own hotel in Guangdong province and on the basis of theory of management-buyout (MBO), the thesis put forward an MBO scheme for the hotel, made a systematic and comprehensive summary of the operations and set up a valuable example for management-buyouts of small and medium state-own enterprises, especially for that of the branches of large-sized ones. The writer concluded the experiences as follows:1) A successful MBO must be legal and regular and must ensure keeping and increasing the value of state properties. It should balance the interests of relevant sides and help the target company to run steadily and continuously.2) The seller, the buyer and the target company should be thoroughly researched and analyzed while designing and operating the scheme, since the success of MBO relies on full participation and cooperation between them.3) The operation mode of MBO should be in accord with the situations of relevant participants.4) It is critical to chose a proper fund mixture, define a suitable share structure and follow scientific pricing.5) The potential risks of MBO operations must be handled and considered with great care.