Managers Leveraged Buyout (mbo) Practices And Case Studies

Low efficiency of Chinese enterprises and crimes of Chinese enterprisers have been paid more and more attention to by society day by day these years. Unreseanable system of property right is one of the main reseans for the phenomena. Can we find some good means to solve the problems? In my opinion, Management buy-out (MBO) can be an efficient means. In this paper, some useful inquiries and analyses with theoies and practice referring to MBO are presented.There are four charpters in this article: the established background of MBO and its role in Chinese industry reformation is introdused in the first charpter. Then in the second charpter, Practical operation of MBO in dealing with procedure, programm making, problems involved is illustrated. In the third chapter, depending on the theories in the chapter one and charpter two, it analizes the cases of MBO of the Company ABC and Extend Everywhere Co., Ltd., and makes further introduction of operation programm, organization and strategy of MBO. In the last charpter, we make some discussion on the law frame of MBO, on law documents which should be paid more attention when put into effect and on how to deal with the problems of investment limit and limitation of circulating necessary funds.As a means to adjust the rights of holding corporations, a way to realize changes of function of the management, MBO makes it possible to solve the problem of proporty rights of enterprises of China. In the enterprises reformation in our countries nowadays, in a word, MBO has a wide market foreground to state-owned/state-run enterprises, or even to private enterprises .