China's Management Buyout ( MBO ) Of The Main Financial Problems And Its Countermeasures

Management Buy-outs (MBO) is a systematic innovation, as well as a combination of the reform of property right, financial means and the capital market. Essentially speaking, the relationship between creation and distribution of wealth is impartial, hence enterprise supervisors attach importance to the crucial functions of the enterprise inner incentive system.As related policy and legal regulations enact in our country, MBO develops rapidly in recent years. A number of cases of MBO began to emerge in China after the first case of Beijing SiTong organization. But there are some problems on how to be operated practically now. Though MBO cases happened in vary companies in our country, they do have lots of problems in common. These problems, to some extent, restrict the success of MBO in enterprises as well as the development of MBO in our country. If we fail to handle them properly, they may be considerable obstacles for us to the further development of companies in future. So it's rather necessary for us to discuss on these problems. This thesis researches some problems about MBO, such as pricing of MBO, financing of MBO and financial surveillance management of MBO. Aiming at the problems of price during the process of MBO, the thesis analyses the problem of taking net assets per share as the bottom price, and advance that the price should attach importance to unborn incomes with setting up a mechanism about price competition and cultivating market environment. Being dead against the problems of financing in MBO, we bring forward some paths to expand the financing manners, such as broadening correlative tethers, expanding financing from finance institutions, exploring junior debt tools, constituting financial policies about preference bond, adopting affiance and setting up MBO fund. We also give some advance on the problems about financial surveillance and management, such as strengthening announcement of information, pushing the system about accountant accreditation paying more attention to surveillance and management after MBO and consolidating laws about MBO. Through these researches, we find the idea that all companies can actualize MBO is wrong, so the thesis summarizes the ranges of application about MBO in our country.Though these researches, we hold the highest hopes to MBO actualization and expect we can offer more precepts and theory which can conduce to accelerate the development of MBO.