Study On Financing Structure Of Leverage Buy-out Of Our Country's Enterprises

As a financial innovative project, leveraged buyout has initiated the double revolutions of American economy. One revolution happens in company's financing field and the other happens in company's governing field. In the financing field, leveraged buyout in heavy debts has aroused the innovation of financing implements. Finance implements such as junk bond, gap bridge loan, private placement fund, risk capital appearing in succession, have promoted the innovation of finance implements. The unique financing structure of leverage buyout is of great significance to the stockholders'value. Some theoreticians believe that the heavy-debt-feature of leveraged buyout solve the problem of agency conflicts in the company's governing. Therefore, it is vital to research on the arrangements of the financing structure of leverage buyout. Accordingly, this thesis is to analyze the arrangements of the financing structure of leverage buyout in four sections. First, it introduces the topic significance and theoretical foundation of the research on the financing structure of leverage buyout. Second, it analyzes and explains the important concepts and mechanism related to the leveraged buyout. Third, in terms of the changes of the external financing structure of leverage buyout (taking the USA for example) and internal current situation, it points out the proper arrangements of the financing structure of leverage buyout in our country. Finally, it concludes and points out the further research problems and deficiency.