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

Author: None
Publisher:
Publish Date: 2005-05-11
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, leading to dilemmas in China. Thus, we theoretically explain the of management buyouts in China and point out future directions. The proposed theoretical framework also breaks the current domestic research trend of either focusing on practice or merely describing 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 carefully organize multiple management buyouts cases from the UK and the US based on the data we collected. For each case, we structure the facts 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.