The Success Path of Management Buyouts--The Dilemmas and Breakthroughs of Management Buyouts in China

Author: Wei Jian
Publisher:
Publish Date: 2005-01-01
Features: This book has two distinct features:
First, theoretical innovation. Based on existing theories, we propose a theoretical framework that explains the dual nature of management buyouts—efficiency enhancement and wealth transfer—as well as how external factors (such as investor protection levels and effective M&A market procedures) constrain its development path. Due to China's low level of investor protection and limited effective M&A market procedures, management buyouts tend to develop into channels for wealth transfer. However, management buyouts have indeed brought effective outcomes to state-owned enterprise reforms, such as shareholder screening and improved incentives. As a result, management buyouts in China have faced dilemmas. This theoretically explains the of management buyouts in China and points toward future development directions. The proposed theoretical framework also breaks the current trend in domestic research, which either focuses on practical aspects or merely describes phenomena, advancing the study of management buyouts by one step.
Second, rich and in-depth case studies. We not only provide detailed and thorough introductions to various types of management buyouts in China but also meticulously compile multiple management buyouts cases from the UK and the US based on the data we collected. For each case, we organize the factual details into three parts: acquisition background, transaction arrangements, and post-acquisition changes. Then, we conduct in-depth analysis based on the characteristics demonstrated by the cases and the needs of theoretical analysis. These cases not only enrich our understanding of the operational practices of management buyouts but also clearly highlight the differences between Chinese and foreign management buyouts, thereby providing a foundation for theoretical construction.