Management Buyout (mbo) Regulate The Development Of Research

Management Buy-outs(MBO)' denotion is: the managers purchasethe stocks of the company which is managed by themselves with theirown reserves or external financing and will be the shareholders ofcompany, the MBO will change the company's ownership structure,control-right structure and assets structure, at last the company will bereshuffled and get the expected profit. MBO has being prevailed sinceit is introduced to China as a way of Leveraged Buyout. But theGovernment has maked the policy to suspend examine and authorize theMBO and some scholars doubt it's feasibility. Is the MBO workable inour country on earth? If it is feasible, what condition is needed? Andwhat are the countermeasures to make MBO standard development andobtain better effect? This paper from theoretical angle and realisticangle make a very comprehensive research on MBO. The paperanalyzes the seven differences on MBO among foreign countries andChina and finds out our gap place after having the foreign successfulMBO on theory and practice. Subsequently the paper analyzes ourMBO's effect from financial angle and gets the conclusion that it's effectis not obvious. At last the paper puts forward countermeasures andsuggestions to make MBO standard development and obtain better effect.Management Buy-outs is not only a way of M&A, a reform channel ofproperty right, it's more a kind of capital market's financing tool, akind of pattern of company's organization and administration. From theessential of MBO angle the author gives the advices: pefect the capitalmarket and perfect the company's administration structure after MBO .