Consulting Support for SME Business Succession via M&A for Firms Without Successors

100 Companies for Basic Consulting, 40 for Comprehensive Consulting

The Ministry of SMEs and Startups announced on March 24 that it will be launching the “Consulting Support Program for Promoting Business Succession M&A,” aimed at facilitating smooth succession for small and medium-sized enterprises (SMEs).

According to the ministry, as SME owners are rapidly aging, policies are being implemented to promote business succession via M&A to ensure the continued operation and growth of these businesses. A survey on the status of SMEs showed that, as of 2024, 44.8% of CEOs at small manufacturing firms are aged 60 or older, a figure more than three times higher than a decade ago.

When a company pursues an M&A, basic preparations are necessary before a counterpart is identified, such as developing acquisition and sale strategies, conducting company capability assessments, preparing company introductions, and carrying out market research and information gathering. Once a negotiation counterpart is identified, support is needed for company valuation, due diligence, and the drafting of negotiation and contract documents.

The ministry will operate this program by dividing it into basic and comprehensive consulting categories. Considering that the support is for M&A with the purpose of business succession, selection criteria will include the age of the CEO at the selling company and the absence of a family succession plan. The plan is to select 100 companies for basic consulting and 40 companies for comprehensive consulting.

Companies selected for support will receive tailored consulting services through M&A intermediary institutions. Up to 1 million won (with a 30% self-payment) will be provided for basic consulting, and up to 10 million won (with a 30% self-payment) for comprehensive consulting.

Korea Technology Finance Corporation, which is implementing this program, has established a collaborative network by selecting and registering a total of 14 organizations—including accounting firms, law firms, and consulting firms with extensive M&A advisory and brokerage experience—as business succession M&A intermediary institutions.

Korea Technology Finance Corporation will release detailed information about the program on March 25, and applications will be accepted starting April 1 through the official Smart Tech Bridge website.

This content was produced with the assistance of AI translation services.