TheRational Thinking About Management Buy-out In China

Management Buyout can be abbreviated as MBO. It is a purchase action, that is the target company' managers buy the stock shares of the original company take use of the capital that is borrowed, to change the ownership structure ,controlling right structure and property structure, further to re-arrange the original company and gain expected profit.Management Buyout begin in last century 60-70 ages, 80ages reached it peak .the purpose of MBO is to increase the efficiency of the whole company or the department of the company. In foreign countries there are two attitudes or think to the MBO on the efficiency of the MBO: one is efficiency advancing appoint: they think that the MBO is high-efficient to promote the resource arrange level; another is fortune transfer theory, they think MBO just is a way to transfer the fortune again. the revenue of MBO come from the deprive of the creditor,share-holders,works and the government tax. But the efficiency advancing theories become the dominant theory, and the fortune transfer theories have not been known by everyone, because it has no truths to support it. In foreign countries, many theories about MBO are studied .But the most important theories we have discussed in this article are: the entrust-agency theory; the encourage mechanism theory; and property encourage theory.In the 90s MBO come to our country, and it is carried out in serious, we have gain big successes, In the main time it have important meanings: it lows the cost of the agency in the company,make the enterpriser extent their capacity and another more chance for State-owned enterprises to exit from competitive fields. Now we know there is a series question and barrier in the process of MBO, such as: financing question, the price-making question, the question of the information known to the public, etc. That is because we are not complete in the law, regulations and policy. In these years, so the government departments strengthen the watch and...