Financing Model For State-owned Listed Company Management Buyout (mbo)

Management Buy out (MBO) is a purchasing way to mean that thegovernors or managers of the target company make use of the capitalwhich is raised on loan to purchase the share of the company, and then itchanges the company's proprietor structure, controlling power structureand capital structure, thus, it attains a purpose of reorganizing thecompany, and acquires the expected profits. MBO expends the traditionalmanagement theories, and makes the theories have maneuverability. Inthe meantime, MBO is also an innovative technology in finance realm.This paper mainly draws lessons from foreign financing experience,combines our country's state of the nation, and discusses the financingway and problems which are brought by MBO in china. At the same time,it puts forward some policies and suggestions to establish a valid MBOfinancing system.Chapter one is the outline of MBO. It is about the MBO definitionand concepts, studying from entrust-act theories, entrepreneurencouraging theories etc, looking back the origins and development ofMBO in and abroad, and generalizing the special meaning to our countrystate-owners enterprise reform; Chapter two: Make a synopsis analysis to the United States,England, Russia and the Eastern Europe, Japanese etc., and make aconclusion for the international financing methods and arrangement, andprovide a good reference for china's MBO financing; Chapter Three: this chapter mainly discuss china's MBO financingcondition . It summarizes the state-owned listed company's financing wayand the applicability choice for different companies. It Points out that itmainly is subjected to the laws and regulations, capital market currently isnot very perfect, no good withdraw mechanism, and more important isthe restriction of financial tool, so it's important to develop suitablefinancing tool to resolve MBO financing problems; Chapter Four: to establish a valid MBO financing market. MBOfund is a way that can expand under the realistic condition, which canprovide strong funds support for the success of MBO. In the mean time,to adapt to a flexible purchasing way to expand china's MBO financingchannel. And in basically, this paper gives suggestions for the financingsystems to resolve the problems.