Standardization Of Management Buyouts

Since the Sixteenth Congress, the state-owned assets management system has broken through in essentially and China's enterprise reform entered a new period, which is to "employee ownership", "Equity Incentive", "market reform", "joint-stock company" "Shares diversification, the introduction of external resources" in the name of head of enterprise reform movement all over the country. In reform in diverse, management buyouts plays an important role.Management buyouts (MBO) is a main form in mergers and acquisitions, management buyouts of China's state-owned enterprises in the context of property rights reform is from abroad. As an institutional innovation, it helps to eliminate the opportunistic behavior of agents, so that managers who acts as owners and operators take charge in operation in the company in order to establish effective corporate governance structure. Classical theory of management buyouts in Europe,America and Japan, has proved that the MBO can reduce the agency costs; optimize the allocation of resources and provide a more effective incentive mechanism to enhance the performance of the company.With state-owned enterprise reforms advancing, China's MBO has been very active, and produced a wide variety of ways to circumvent policies limitation.MBO in China is not a smooth road, through the climax,dispute and the suspension phases that called for, which root in management buying in many of non-standard place.At present, China's management buyouts (MBO) is at a crossroads, with finishing to lift the ban state-owned shares, how to establish policy to regulate MBO is curial. Based on analysis of the theory and the real diagnosis two aspects, the article puts forward suggestion plan:the consummating and enhancing supervising and managing; strengthening the market restraint, through the market judgment and the pressure to enhance management achievements; examining the purchase main body qualifications strictly; choosing the goal enterprise reasonably, establishing the reasonable fixed price mechanism; the regulating financing behavior and the financing innovation, and consummating the laws and regulations supervising and managing system, which causes the MBO this merger and acquisition technology to step in the standardized advancement, moves towards together with our country's merger and acquisition market maturely, serves well the economic development.