What options are there?
Financing the business succession is an important aspect for both successor and predecessor. Of course, financing is strongly dependent on how the business is transferred. It can range from a fixed acquisition price to a gift tax, when the business is given to a successor without payment.
It is crucial for the successor to know the pros and cons of different kinds of financing. Besides paying a sum for the acquisition, more money might be needed for investments or hiring new employees. Financial means can be supplied by the successor, other shareholders or third parties like banks and investment funds. External funding can play an important role in financing a succession.
Funding for business succession: A broad variety of programs
All the funding programs that are available for business founders can also be used by successors. In Germany, there are funding programs not only for single successors but also for group succession that takes over a business as a team, part-acquisitions and consulting. Special funding institutes or banks can help finding the best funding program.
Additional links and hints (in German only)
The nachfolgewiki contains many articles that explain different aspects of business succession and about financing and funding support in business succession. The following articles might be relevant to you: