Management Buy-out Practices In China Compared With U.S.A And Europe And Case Study

The paper firstly introduces the origination and history of management buy-outs and the criteria of selecting target companies, and analyzes the marketing environments for management buy-outs and implementing effects from the viewpoint of participants, buyers, pricing methods, mechanism of information publication, financing tools and exiting strategies in Europe and the United States. Then it compares the management-buyout practices in China with Europe and the United States in perspective of history, marketing environments, operating methods and effects etc. and takes American NJR Nabisco case and China Midea case for example. The paper suggests that in order to implement management buy-outs effectively and efficiently in China, the following affairs should be put emphasis upon:Further clarify the participants of management buy-outs;Legislate for management buy-outs and detail information publication rules in transactions;Propel the reform of financing system, broaden channels for MBO financing and reduce transaction costs;Use auction theory to inform takeover regulation and produce fair transaction prices.