MBO came into being in 1970s; it has been popular in the western countries since its birth. MBO is the way to buy the company by the managers. The managers want to be the stockholders and make enough earning for the company. For solving the assets problem, China used the way of MBO in the State-owned Company. But when MBO was used in the State-owned Company, there were many tough problems happened.
This article begins with the origin of the MBO theory, the concept and principium of MBO, and the effect in the State-owned Company. After that, introduce and analyze the problems of MBO in the State-owned Company, especially the problem of the finance. Last, find a way to solve the problems and expect the future of the MBO in China.
Key words: State-owned Company MBO Financial Problem