Problems And Countermeasures Of China's State-owned Small And Medium-sized Enterprises To Implement A Management Buyout (mbo)

The Management Buy-outs (MBO) is the target company's manager layer use loan capital purchase their company's stock to change company's equity stock structure or governance structure, then through reorganizing target company to realize the expected earning. The MBO theory originates in the capital market of the developed western nation . The intra-enterprise management purchase their company's stock through the individual fund or exterior financing to realize enterprise control power shifting from the major stockholder to the manager layer in the behavior.MBO has provided the new thoughts for the reforming of middle little company in our country and speeds up the reforming process.At the same time, the MBO process brings several problems during implementing,such as distemperedness in law,not flowing freely in financing channel, insufficiency in information announcement and the questions which many urgently awaits to be solved.The article has carried on the analysis of implementation MBO feasibility and its main problems for our country State-owned middle little company, especially for the value evaluation on the state assets and the financing channel and method pointed out that MBO can take positive role in distincting property,decreasing the agent cost and encouraging manager layer.Because the implementation of MBO in state middle little company is not very normative, the key point is how to standardize the implementation of MBO. Some further proposals and measures for the problems such as law,financing channel,pricing modes and information announcement in the implementation of MBO is proposed separately on the basis of current status,problem and cause in the implementation of MBO.The paper emphasized on pricing model and suggested it should be based on net assets,profitability and manager layer' history contribution.A pricing model was established. The purpose is to provide the reference for quantified analysis of pricing mode in the implementation of MBO.