A Case Study On Management Buy-Outs Of The GAJ Company

With the continuous development of my country’s industrial Internet,MRO industrial products e-commerce enterprises have ushered in new opportunities for development under the dual benefits of my country’s economic development and policy support.The research on enterprise management buyout has been a hot topic in academic circles in recent years.Many cases have emerged after the introduction of management buyout in my country,but it is mainly carried out by domestic enterprises,especially state-owned enterprises.The research on management buyout of commercial industry and domestic foreign-funded enterprises is rarely discussed.Based on the MBO case of GAJ,a domestic foreign-funded enterprise,this paper analyzes the background,process,motivation,performance and other aspects of MBO on the basis of fully understanding the current situation of the company,and aims to summarize the MBO of GAJ.The successful experience of the same industry can be used as a reference for other companies in the same industry.This paper first introduces the macro background of MRO Industries and then introduces the general situation of GAJ and the process of this management acquisition.GAJ’s case study found that GAJ’s management was motivated by external acquisition of the company,the removal of restrictions placed on the company by the former U.S.parent company to improve the efficiency of the company’s operations and broaden access to financing.GAJ’s management was then driven by the introduction of venture capital to facilitate financing,facilitate the completion of management buyouts,and fully integrate the company’s structure,operations,and people.The Company’s solvency and operating capacity improved significantly following the completion of the management buyout,while the Company’s profitability and growth capacity temporarily fluctuated as a result of changes in its strategically adjusted customer structure.GAJ’s post-management acquisition business size,per capita efficiency and distribution channels have all improved,and the potential pricing,financing and operational independence risks in this management acquisition have been circumvented and achieved good results.Finally,based on the case study of GAJ’s management buyout,the experience and enlightenment are extracted,including: the company’s management can actively introduce institutional investors to assist in the management buyout;when the enterprise conducts the management buyout,it should balance the financing structure and choose the appropriate one.Carry out MBO by financing;pay attention to key issues such as the pricing link in MBO and the source of acquisition funds,pay attention to the prevention of relevant acquisition risks,do a good job in the integration work after the acquisition is completed,maintain the independence of the company’s operations,and enrich the management The theoretical and practical implications of acquisitions.