Legal Dilemmas and Solutions of Management Buyout (MBO)

Author: Ren Zili
Publisher:
Publish Date: 2005-10-01
Features: This book is based on the author's doctoral dissertation and is a legal monograph that systematically explores the legal dilemmas faced by domestic enterprises in MBOs and their solutions. The author first briefly introduces and analyzes the development and theoretical foundations of MBOs abroad. Then, based on an empirical analysis of the development of domestic enterprise MBOs over the past decade, the author summarizes five major subject types and five financing models of domestic MBOs, and evaluates the advantages and disadvantages of related acquisition entities and financing methods. Finally, the author conducts a systematic study on the root causes of state asset leakage in MBOs and the issue of transfer pricing, and proposes several legislative improvement suggestions to lawmakers. The author's research concludes that MBOs have vast application potential in China's enterprise reforms, and the current legislation urgently needs to accelerate its pace in regulating MBOs. The narrow mindset of the government decision-making layer in promoting MBO development is the main factor affecting the full play of MBOs in China's future enterprise reforms. This book aims to inform enterprises about the various types of MBO implementations, the potential legal issues they may face, and the solutions to these problems, helping them avoid unnecessary detours. At the same time, it provides a reference for lawmakers to improve relevant legal rules. Currently, there are some books in the market on this topic, but they generally fall into two categories: one is popular reading that covers general knowledge or operational techniques of MBOs, and the other is highly theoretical professional research. The greatest difference of this book from similar books on the market is that it combines the strengths of both: it provides a comprehensive introduction to general MBO knowledge and a focused analysis of typical practical cases, while also conducting in-depth theoretical research and operational model discussions. In terms of content, it revolves around three core areas—acquisition entities, acquisition financing, and asset transfers—offering both broad overviews and detailed insights, with a balance of depth and breadth.