Equity Investments for Business Succession

MBG Baden-Württemberg grants silent participations of up to 750,000 euros for start-ups in Baden-Württemberg who aim to take over a company or acquire a stake in an existing business. The purpose of the co-financing is to cover the capital requirements arising from a business takeover, in particular to settle the purchase price and to finance necessary investments. Applications can be submitted continuously and at any time before the planned takeover measure begins. This instrument thus opens up additional scope for action in the financing sector and complements traditional bank loans with long-term mezzanine capital.

A prerequisite for funding is a convincing start-up or takeover concept, a reasonable purchase price, and an investment location within Baden-Württemberg. The amount of the silent participation is based, in addition to the company’s equity, on the founders’ equity contribution. This generally improves the equity ratio and the rating with banks. The measure not only strengthens the capital base but also provides founders with access to a broad network of chambers, associations, and experts. This approach promotes sustainable business development and ensures the long-term continuation of traditional companies in the region.