Study On Purchasing Price Of Management Buyouts In Listed Companies Of Our Country

Management buyouts (MBO) is that managers of the target company purchase the company's shares by the loans, in order to change the structure of proprietor, the structure of control and the structure of capital, which aims to achieve the reorganization of the company and the expected proceeds. In China, MBO is still in the initial stage, the feasibility, obstacles and risks of the MBO have become the focus of problems after MBO put in practice in China's listed companies. Especially the relevant interests dispute caused by MBO became the focus. MBO is only an ordinary means of mergers, but it plays the two roles of state enterprises' innovation and wealth. The MBO's background of introduction is the strategic restructuring of state economy and the reform of state enterprises. The government hopes to realize "state exit and people enter" by underweighting state shares in the state enterprises. However, it emerged in many financial problems in the process of MBO, especially the problem of pricing, which impacts the fair, justice of MBO and the loss of state assets. Therefore, the problem of pricing which is the focus of management buyouts has become the important problem which could prevent the loss of the state assets and improve relevant laws. The text studies the theory of MBO pricing mechanism in order to improve the related laws and the MBO pricing mechanism.This text divides into five parts. Chapter 1 introduces the background of MBO research, internal and overseas actuality of research and the research methods. Chapter 2 expatiate the conception of management buyouts and the emergence and development of MBO. It finds that the some causes of MBO are logical by the analysis of the cause of MBO and the enterprises' condition of MBO. And It is not suitable to have a MBO for any enterprise. The seller and buyer will feel satisfaction only when having a MBO in sufficient reasons, and the MBO will achieve expected effect. Then, It introduces the process of MBO and shows that the pricing is the focus in the entire processes. The third part analyzes the influenced factors of MBO. China's special conditions led to the MBO participants, the evaluating of enterprises' value and the status of two participants influence the purchasing price directly. It has to adjust these factors if we want a fair and reasonable pricing mechanism. The fourth part proposes some problems in our pricing mechanism of China's MBO by analyzing the pricing actuality of the listed companies and contrasting it with American pricing mechanisms. The fifth part gives a series of advices to the problems above in the MBO mechanism.