Shanghai Yupu Container Transportation Co.Ltd MBO Case Investigate

MBO has been a popular wording in firm structure and corporation regulation in western countries for nearly two decades. Few years ago, it became popular in China. Many state-owned enterprises which have the problems like the omission of the owner, the reform of property right often adopt MBO to solve the problem of property right transfer, to stimulate the managers, to separate owners and managers of the enterprise.Shanghai Yupu Container Transportation Co., Ltd is an unlisted state-owned and collectively-owned enterprise. It was previously a school-run enterprise and the operation was not completely like a formal enterprise. The decision-making of the enterprise managers is stability oriented and is very passive in seeking development opportunities.The operation of management-buyout of Shanghai Yupu Container Transportation Co. Ltd is a typical case of unlisted enterprise conducting MBO. Based on the research and the discussion of this case, the article analyses the necessity and possibility of conducting MBO through SWOT analysis and PEST analysis. It also introduces the process and project of management-buyout of Yupu Container Transportation Co.. The article not only summarizes the changes and achievements after MBO, but also points out matters for attention and keys for further development. It will offer some good advices and reference for many other unlisted enterprises carrying out MBO in China.