Case Study Of PE Participated Management Buyouts In Korean Companies

PE participation in MBO model means: PE using their own possession of huge funds and acquisition experience provides MBO financing, specific acquisition plans and legal advice. After completed the acquisition, PE takes part in the Board of Directors, by strict control of enterprise financial management and supervision, protects the interests of the shareholders or creditors. Also PE provides management with business strategy and technology consulting for innovation, combined with management to create enterprise value. Last premium exits.PE participation in MBO model can produce a variety of positive economic effects. Financing support for the management, exercise of shareholder rights, effective participation in the reorganization after the acquisition and joint management to create business value, etc., PE plays a variety of roles.Korea "STX" and "FILA" cases’ acquisition model is PE participation in MBO. "STX" case: CFO of the company during the financial crisis in his group’s restructuring, joints PE acquires the controlling stake of the company. "FILA" case: Korea Branch Manager joint PE through totals 3 times MBO, acquires the all over the world "FILA" ’s controlling stake.After simple overview of the theory about MBO, PE and PE participation in MBO model. This paper analyzes Korean market’s two real cases: “STX” and “FILA”. And then derives the specific PE’s the role and risk in MBO. Finally, comparative analysis of China & Korea MBO cases and market environment, proposes China market implication of this case study.