Theoretical And Practical Analyses On MBO Of YOUA Group

Management buyout (MBO) is a form of acquisition that existing managers use financing proceeds to buy or acquire a large part of the company to restructure the ownership and obtain expected revenue. Following with the reform of the state-owned enterprises, more MBO have been taken under the pressure of perspicuity of property right. As an effective form, MBO provides an approach to solve the problem of "lack of proprietor" and makes it more convenient for stale-owned capital retreat from the competitive domain.The article is focusing on the research of theory and practice of MBO with approaches such as comparing, analyses and case studies. First, it expounds the research background and introduces related literature and course of MBO. Second, it analyses the foundation of MBO theory. Third, it introduces the YOUA group's MBO case. Then, it discuss reasons for the case's successful, such as permission of government policy, support of local government, conformity of buyout term, effective prompting to the management, creation of restructure mode, and the most important, the effective subsequent integration. The author also discuss problems such as unreasonable pricing and evaluation of state owned capital, as well as excessively relying on the government to settle financing problem. Finally, the author got revelation from the case. Although many problems happened in MBO in our country, its positive function does exist, especially for the reform of state owned enterprises. Therefore, we should make further exploration on MBO of SMEs, as well as expedite the systemic innovation of pricing and financing. We may study on evaluation methods abroad, introduce market mechanism, reinforce information revelation, increase the openness of buyout price, to make the process open and fair. We may also attract strategic investor, adopt interior financing adequately, using venture capitals fund more and quest new mode of financing actively.