Research On Making Price Of Management Buy-outs For Listed Company In China

MBO,that is Management Buy-outs, referred to as MBO, management refers to the use of its own funds or through external financing to buy the enterprise they shares in to change the Company's ownership structure,control structure and asset structure, restructuring of enterprises and to obtain expected return of a takeover. Management buyouts rises in 70,80 during the 20th century in the era of European and American countries,and gradually evolved into a global trend. Because it is effective choice to clear property rights,improve the operational efficiency of capital markets,as an incentive for the executives of one of the ways, Can help enterprises out of the plight of principal-agent mechanism,it rise in China in recent years.Experts perfect the corporate governance structure as an effective means.At present, management buyouts in China is not only a reorganization of behavior to change the shareholding structure, but also the trend of change in corporate system. In process, the pricing is the core problem ,is the focus problem to prevent loss of state assets, and improve relevant laws and regulations. Reasonable pricing can protect small shareholders'legitimate rights and interests, avoid the state-owned assets have been undervalued, but also the management of the enterprise after the acquisition to be able to effectively integrate the premise.With the continuously increased of enterprises that carry out management buyouts,the management of the acquisition of Chinese enterprises, especially in management buyouts of listed companies,in the operation of the process and caused problems with constantly emerging. as the transaction price is too low, resulting in state-owned serious loss of assets,domestic academics on management buyouts and the reform of state-owned property rights issues intensified.For China's listed companies that are still in the growth,management buyouts implementate under the conditions that market development is inadequate,and the law is not perfect. This article based on management buyouts of listed companies in China the status quo,on the basis of comparative analysis of pricing differences at home and abroad,in the light of issues in the pricing course,as the basis of pricing is unreasonable and impossible to measure the historical contribution of managements, the lack of intermediary participation and effective supervision, the operation of non-transparent,etc. Finding the reasons and proposing solutions to standardize the pricing process,improving the situation of loss of state assets,motivating the managers better,improving the operating conditions of companies.