The Study On The Evaluation Of Mbo Price Fairness In China's Listed Companies

Different with the development of management buy out (MBO) in Europe and the United States, where MBO has become a main pure form of mergers and acquisitions. However, it takes more responsibilities in our country, such as defining enterprise's property right ownership and the withdrawal of state-owned assets. Besides, it helps to upgrade our economic structure and improve operational efficiency. Hence, MBO was praised and recommended at first.However, because the relevant defect of the legal system and external environment, in practices of purchasing of management, a lot of questions have appeared, especially it's hard to judge whether the price is fair or not regarding with the enterprise's property value and whether the price causes losses of state-run assets. So, the paper concentrates on the topic"evaluation of the fairness of MBO pricing". First, the paper analyzes theories and current situations of MBO both in China and abroad. On base of that, the paper selects 74 MBO business activities in listed companies of our country. Second, empirical analysis is used to compute and analyze the data. With the analyzing consequence, the paper constructs a system of pricing fairness evaluation. In the evaluation system, Analytic Hierarchy Process (AHP) and Puzzle Evaluation Method are used to value factors that influence the fairness of price. At last, an improved pricing process is put forward.There're five chapters. The third and forth ones are the core of the paper, which includes some innovations. Firstly, the paper introduces several new variables to discover whether it influences the price in practice. Secondly, the paper starts from the implication of"fairness", and build a three-hierarchy system. Lastly, the paper suggests a pricing process which should lead in hearing, accountability system, and a completely message disclosure system.In all, the paper selects MBO data around 10 years, and breaks through the restriction of lack of samples, so the conclusion would be comparatively persuasive. And the evaluation system which is built according to reality is hoped to provide a reference to form a fair price of MBO in China.