The Discussion Of Financing And Pricing Of MBO

Management buy-outs(MBO) prevailed in the United States in the fourth enterprise merging tide in the middle period of 1980s. Later in 1990s, MBO was introduced into China who was under-going the reform of state-owned enterprises' property right. In 1999, the first case of MBO happened in Sitong Group. In 2001 Yutong Bus became the first state-owned enterprises to implement MBO. After that the 16th National Congress solved such technical problem as the difficulty to get both the reform of the sot and MBO examined and approved. And helped form a situation of "Great Leap Foreword" , in which a lot of listed companies realized MBO. Enterprises were prepared to or have introduced MBO programs one after another. Both academic circles and mass media put this issue under discussion; investment banks established exclusively operated fund for MBO. However , grid circumstances did not last long, in the process of MBO implementation, a variety of problems were revealed, which aroused people' s critical on MBO. In the March of 2003, the ministry of Financence announced to suspend the implementation of MBO, and the circle of economies began to discuss the reforming mode of sues. The discussion intrigued by "the debate between Mr. Lang and Mr. Gu" became a confrontation between Xian-ping Lang and sue assets experts. At the end of 2004, the committee of state-owned assets regulated that large enterprises should be "in sulated" from MBO, allowed to middle and small-sized enterprises study and implement MBO, and made fine items of prohibition regarding MBO.This article studies the development of MBO in China, and analyzed financing and pricing of MBO in China. The main works and innovational points are as follows.In the first place, this article studies and analyzes typical financing structure nowadays, compares the modes of MBO financing in China with those...