Abstract
As the high development economic of our country, the state-owned company who made a great contribution to the economic, also do same adjust and reform to accommodate the changing environment. Management Buy-out is one way of the state-owned company choose. It given us hope, but the discuss in 2004 about the reform of state-owned company made it unclear whether we should go on the reform or not. The loss of the state-owned assets as a result of management buy-out. It made us think more about management buy-out. If we do not solve the problem management buy-out will be a question. So research how to avoid the lose when the reform of the state-owned company made have a huge significance.
The paper focus on the character and process of the MBO .According to analysis the reasons and conduit of the loss on state asset. And then give same advises to prevent the lose when the reform of state-owned company made.
Key words: Management Buy-out state-owned assets loss of state-owned assets the way of loss