LBO Model And Target Enterprise Performance Under Different Motivations

With the loose monetary policy,the transformation and adjustment of national economic structure and the gradual opening of financing restrictions in recent years,leveraged buyout has become a very hot m&a mode in China.In China's immature capital market practice,LBO develops a completely different model with different causes and consequences.The classified research can help LBO play a better role in optimizing resource allocation in China's capital market and reduce the possible adverse effects.Based on the related theory and the system of domestic capital market background,on the basis of the leveraged buy-out based on agent is divided into two leveraged buy-out enterprising leveraged buyouts and hype,and then combined with the selection of gold brocade and the acquisition of jiaozuo ten thousand square,suzhou green and the acquisition of northeast electric two typical cases,using the double case comparative analysis,analysis of similarities and differences of leveraged buyouts,driven by different dynamics model and USES the event study method and the financial index method on different kinds of motivation of leveraged buyouts,to study the influence of the target enterprise performance.It can be seen from the analysis results that the differences of LBO models under different motivations are mainly reflected in the selection of target enterprises before the acquisition,the purchase price and financing arrangement during the acquisition,and the governance of target enterprises after the acquisition.In terms of target enterprise performance,in the short term,the market performance of jiaozuo wanfang and dongbei electric all improved,but the improvement of jiaozuo wanfang was more significant and stable.In the medium and long term,the market performance and financial condition of jiaozuo wanfang have been significantly improved,while the market performance and accounting indicators of dongbei electric have deteriorated,especially the decline of accounting indicators.All of these indicate that leveraged buy-outs can play a positive role in improving the operating conditions of target enterprises,while hyped leveraged buy-outs are not conducive to the operation and capital market development of target enterprises.Finally,in order to restrain the occurrence of hyped LBO,this paper puts forward some Suggestions,such as strict qualification examination of LBO subjects,improving laws and regulations related to LBO,strengthening punishment for buyers of hyped LBO,and establishing expert review system in LBO.