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A Study on the Pricing Problem of Management Buy-Outs (MBO) in Chinese State-Owned Enterprises

Author: LiuYueMing
Tutor: ZhaoLiSan;FanYongWu
School: Hebei University
Course: Accounting
Keywords: Management buyout Pricing Discounted cash flow Management of historical contributions
CLC: F276.1
Type: Master's thesis
Year: 2008
Downloads: 63
Quote: 0
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Abstract


Management buyout (Management Buy-out, MBO ) as a special form of mergers and acquisitions and new modern enterprise system reform in the form of state-owned enterprises in China are widely used, and in the adjustment of state - owned economic structure , optimize the configuration of state - owned assets , reduce agency costs and accelerate the restructuring of SMEs , active management and the management level , and promote the growth aspects of the entrepreneurial class in China has a very important significance . However, at this stage , management buyouts in China is still faced with pricing issues , financing problems , lack of system and many other issues . These problems , as a matter of whether the loss of state assets , will make the management buyout pricing is particularly sensitive , is also the most important . MBO transaction pricing fair management buyout focus of controversy , also MBO core issues . At present , China's implementation of MBO mostly using the net asset value per share as the basis for pricing , the pricing method is the lack of rationality , resulting in the loss of state assets , to the detriment of the interests of small shareholders . In this situation, by studying valuation and fuzzy analytic hierarchy process , consider quantified based on fuzzy analytic hierarchy process in enterprise valuation based on management's historical contributions , and then put forward the introduction of the bidding rules in the negotiation process mechanism for the transfer of state-owned shares , the final confirmation of the actual price , pricing idea MBO MBO pricing methods and in accordance with the idea of ??in-depth study . The author believes that the MBO pricing study has some practical significance : from the practical point of view , for the specification and development of MBO , especially the pricing put forward feasible suggestions . In theory, management buyouts pricing ideas and methods suitable for China's national conditions , so you can be objective and fair method to solve the pricing of the acquisition of the management of state-owned enterprises in China . Although flawed and imperfect , but more scientific net assets for the past simply an attempt MBO pricing methods .

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CLC: > Economic > Economic planning and management > Enterprise economy > A variety of enterprise and economic > State - owned enterprise economy
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