Research On Financing Mode Of Xishanju MBO

With the rapid development of China's economy,the separation of ownership and management of enterprises has become more and more intense.Management gets the actual control of the enterprise through the acquisition,making it easier to lead daily business decision-making and development,improving the operating efficiency of enterprises.However,in the practice,because the management can provide very limited funds,most of the funds need to gain from other channels,so the choice of financing and its mode of MBO is extremely critical.With the vigorous development of China's Internet industry,MBO has become one of the important means for Internet companies to promote their own development.As China has a lot provisions and restrictions in the laws of MBO,a direct result is that the MBO corporate's financing channels are narrow,and encounter financing difficulties.How to solve the Internet company's financing and the choice of the modes of financing is particularly important in such an environment.This thesis analyzes the problems existing in the financing process of Xishanju,and puts forward some measures to solve the problem of modes of MBO financing for future Internet industry companies.On the basis of the theoretical research on management acquisition and financing,this thesis analyzes the case of acquisition and financing of Xishanju management,Through the elaboration of its acquisition background,motivation,process and choice of financing,this thesis analyzes the problems in the process of choosing the financing mode of Xishanju,and puts forward the corresponding solutions and a reasonable way to choose financing.This thesis finds some Internal and external problems in the process of Xishanju financing of MBO,through the analysis,the internal problems are the lack of quality and high labor costs,moral hazard of Xishanju management which Jinshan loans can easily lead to,and the incomplete control of Xishanju management after MBO.And the external problems are the valuation risk that information asymmetry lead to,the limited financing instruments of Xishanju,and the complicated legal environment faced by Xishanju financing.In view of the above problems,this thesis makes the following suggestions.In the improvement of the internal environment,Xishanju mainly have the following three strategies: Firstly,increase the number of buyers to break the situation of Xishanju unilateral purchase;Secondly,use the power of investors to optimize the management of the acquisition of capital structure;Thirdly,improve the exit mechanism to perfect the acquisition after the reorganization and optimization.In the improvement of the external environment,Xishanju has the following three coping strategies: Firstly,the thesis suggest Xishanju use information symmetry mechanism to avoid valuation risk;Secondly,optimize the management of the acquisition through the relaxation of the credit system,so that Xishanju can choose the financing tool;Thirdly,improve the management of the acquisition of the relevant laws and regulations policy in order to lay the foundation for the future development of the management Buy-outs.At the same time,this thesis also analyzes the reasonable choice of acquisition mode of Xishanju,and the thesis thinks that Xishanju can make its financing mode more diversified to optimize the financing,so it can carry out the management buy-out plan better.Through the analysis of the existing problems of the current management buy-outs in China and the summary of the innovative thinking of the acquisition of Xishanju,the thesis draws a conclusion that it may be suitable for the financing mode of the acquisition of the Internet industry in China and the good development zone for the financing mode of the future management of the Internet industry in China to a certain revelation.