Mbo Problem Of Financing Research

MBO (Management Buyout) has a history about 20 years in the western countries. From 1980's, the MBO became popular for a time on the market of merger and acquisition as a valid means to improve the structure of corporate governance. In our country, MBO was introduced to the merger and acquisition market as a good medicine to the reform of state-owned enterprises. But after it was introduced in, MBO has experienced various difficulties. Either theoreticians or enterprises have different attitudes towards MBO. But it is affirmative that MBO will become a star in the merger and acquisition market along with perfection of the related rules and laws. However, as a kind of financial innovation, perfect financial mechanism is necessary to the performance of MBO. While financial arrangement is one of the bottleneck problems to implement MBO domestics at present. Under the restrictions of present legal circumstances and capital market, there is much resistance for the implementation of MBO in our country .The validity of MBO in our country will rely on the improvement of finance system. Unless the problem of MBO finance is solved, MBO would not have a good development in China.Considering the MBO finance experience in western countries and the current situation of MBO in China, some pieces of advice are given about perfecting the MBO finance mechanism in China. The essay is composed of five parts:In the first part I gave the summarization and significance of MBO to our country's enterprise system reformation. At this part I briefly stated the definition of MBO and discussed the importance of resolving financial problem.In the second part I analyzed the theories of MBO finance mode. First I analyzed the characteristics and possibility of the high liabilities. Then I introduced the tools of foreign MBO finance, the funds source together with the finance structure. At last I put forward the significances of MBO in our country.