Study Of Management Buyouts Of State-owned Enterprises

Management Buy-out(MBO) refers to the requirement of the shares of a company by its managers for the purpose of changing the company's ownership structure, power of control structure and asset structure, thereby restructuring the company and winning expected returns on investment. The experiences of western MBO show that MBO has active effects in motivating managers' positivity and reducing the substitutive costs. In China, MBO is not only an effective method to form the inspiriting and restriction mechanism, but also a resultful way to promote the strategic adjustment of the state economy.In the paper the definition ,the seduction ,and the general process of operation of MBO was analyzed at first. Then, the author emphasized the analysis of present situation of its development in China and its significance to the reforms of the state- owned enterprises in China. The paper then made a contrast of MBO between China and foreign countries, including the nature of MBO in China, target company , its operating mechanism, domestic financial market and the effect of the medium organizations in China. Following that, the problems of using MBO in China was pointed out and countermeasures were put forward. In case-analysis, the author introduced the whole process of the using of MBO in HUAYUE Group ,which will provided a reference to the qualified middle & little company in using MBO. Due to the limit of the domestic financial market, main body of buy-out, the buy-out price and the information-announcement etc., it has many questions to carry outMBO in China. But with the perfecting of the market mechanism, MBO will take a more active effect to reforms of the state- owned enterprises inChina.