The Performance Study Of The Management Buy-Outs On Shandong Ruyi

In the market practice of Western developed countries,management buy-outs(Management Buy-Outs),as a special leveraged buyout method,has played a unique role in strengthening corporate governance structure and improving company performance.In the 1990 s,in order to speed up the reform of the property rights system and effectively withdraw state-owned assets,China in the economic transition began to introduce this type of corporate mergers and acquisitions.However,due to the lag of relevant legislation in China and the impact of special national conditions,management buyouts gradually exposed problems such as non-standard process,opaque information,wealth transfer,and loss of state-owned assets.This article comprehensively reviews the management acquisition and its implementation process,relevant literature on the impact of performance,and related theories.Then select Shandong Ruyi Case as the research object,focusing on the management's indirect acquisition of the company by purchasing the company's largest shareholder,Wool Spin Group.The control of the realization of the MBO process,the analysis of the post-acquisition capital market response,changes in the company's operating performance and its influencing factors were analyzed,and related suggestions and prospects for the future development of Shandong Ruyi and management buy-out were proposed.Through this case study,it is found that the motive for the acquisition of Shandong Ruyi MBO is to achieve asset integration,inject quality assets,enhance the company's overall value,and increase market competitiveness.The acquisition process was relatively transparent and fair,and there were no black-box operations such as violation of laws and regulations.After the acquisition,the capital market conveyed positive confidence and positive changes in corporate performance.Although the company still has the characteristics that the related party transactions are not low and the dividend policy is relatively unstable,the overall MBO is asuccessful case.Therefore,we should not absolutely abandon MBO.Instead,we need to properly guide it and constantly improve related policies and systems so that it becomes a good medicine for corporate reform in China.