The Research Of MBO Pricing On Listed Companies

Management buyouts, referred to as MBO, the target company's managers using finance by borrowing to purchase shares of the company, thus changing the ownership structure, controlling structure and asset structure of the company, thus achieving the purpose of restructuring the company and getting expected return of takeover. Because of its incentive to raise the enthusiasm of insiders, reduce agency costs and improve business conditions and other aspects of an active role, which has been widely used. In China, with the deepening of reform, management buyouts have become one of the main mode of enterprise restructuring. At the same time, for various reasons, such as management buyouts also brought black-box operations, pricing too low and the loss of state assets and so on, which led to widespread concern and controversy about MBO. Among the problems, the pricing of MBO is the core and focus of the implementation of management buyouts.Enterprise management buyout price as a research topic, considering the lack of the traditional business valuation theory and pricing methods, the traditional capital budgeting theory of real options theory as the main theoretical basis and research tools, through theoretical analysis, practical demonstration and research model in order to research comprehensively and systematically. MBO pricing is the goal of enterprise property rights to be transferred in the price determination process, the value of target enterprise's property rights depends on the value of target enterprise directly. Therefore, the target enterprise's value is the basis of management buyouts pricing and accurately determining and measuring the value of the target company is the key to the pricing process.Proposed method based on real option in the value assessment of the target enterprise, the theoretical model and the overall idea of the framework:From the perspective of both transactions, assessing the target company's own value and investment value, the target company's own value is composed by the value of the assets and the options value. The investment value of the target company is composed by the target company'own value and the created value which the company has carried out MBO.