Study On Management Buy-outsof Chinese Listed Companies

Management buyouts (MBO) is a leveraged buyout, the target company's management uses borrowed funds to buy shares of the Company, for changing the company structure, ownership structure and control, and realize the purpose of restructuring the company and achieve the desired benefits of takeover. MBO originated in the 70's the United States, as a financial technology innovation and property rights change, which has been widely used in many Western countries. Through foreign acquisitions proved management, MBO can reduce agency costs, improve corporate ownership structure and incentive other internal staff motivation.In China, the management buyout emerged in the 20th century, which be widely implemented as an effective way for the state-owned enterprise reform. However, because of our financial system and inadequate laws and regulations, resulting in the acquisition of academic issues in the management there has been great controversy, especially the occupation of state-owned assets has been the major problem in China MBO implementation issues.So at this stage, management buyouts of listed companies in China to analyze is very necessary.This paper is to study the acquisition of listed company's management issues related to management buyouts of listed companies at this stage of enterprise reform in China plays a very important role, but because of various restrictive measures and introduction of listed companies in our country's current compared with the initial implementation of the management buyout has considerable time difference. This case study is mainly of listed companies Midea and Sina MBO related issues and their implications to explain this difference. The two companies are selected for analysis because they are the most representative ones. In 2000, the listed company Midea as the first company to complete management buyout, which cause a huge response and discussion, focusing on the legality of funding sources and the fairness of the purchase price, there are many people think that the MBO is the management of listed companies by way of acquisition of an encroachment on the state-owned assets and covert transfer and development of the company did not play a significant role in promoting. Any way, we can not deny the beauty of the MBO restructuring of enterprises in China provides a new and effective way, it opens the curtain MBO of listed companies. SINA Corporation in the year-end 2009, completed another management buy interesting case, not only because it is the first listed company in China MBO completed after 10 years, but this MBO is China's enterprise reform in a more critical moment, there are many regulations are in the pilot stage, its reform of listed companies in China will undoubtedly play the role of guidance and reference, especially SINA Corporation funding for the MBO and pricing problems are representative, and Guangdong Midea MBO is quite different. In this paper these two management buyouts of listed companies are from the pricing, financing, acquisition of the main analysis and comparison of these three aspects, and finally concluded. In this paper, both theory and practice of management buyouts of listed companies were analyzed and described, explored the effects of management buyouts of listed companies in China related issues, and made a number of these proposals and measures for improvement. Full-text includes the following four parts:The first part is the introduction part, mainly describes the research background and significance of the topic, theoretical papers, articles, research methods, structure.The second part describes the development process of MBO theory of classification and major the research at home and abroad to describe the situation respectively, the focus on MBO in foreign and development in China carried out a general description and comparative analysis of the development process of Chinese and foreign MBO different conditions and the difference between listed companies in China and highlighted the conditions required for MBO. The third part is the part of case analysis, which is the main part of this section. This part analyze the Guangdong Midea MBO case and Sina's case, the main analysis of the two companies MBO financing issues, the acquisition of the subject to identify problems, and the transaction price to determine the content of these three areas, the use of data, tables, and other reference speaking out over the past decade the development of MBO.The fourth part is another focus of this article, mainly analyze of these cases, proposed MBO of listed companies in the financing, acquisition of subjects to determine, the transaction price to determine the defects in these areas and the causes of defects, and for These deficiencies make specific improvement measures and advice. Finally, summarize the whole thesis. Papers from both the macro and micro proposals and measures to improve and hope to make our country more orderly management of the acquisition and more standardization.In short, management buyouts of listed companies in China, is an important way to enterprise reform, especially reform of state-owned enterprises.It is from the theory and practice of management buyouts to improve the efficiency of corporate mergers to improve the competitiveness of enterprises and China overall strength of the necessary means. China's current case study on the management buyout took place on the latest few case studies, this in reference to the limited research literature based on research done by the recent case of trying to find that China is now the existence of management buyouts of listed companies and resolve the problem.