A new £25 million Welsh Government fund will provide ambitious Welsh managers and management teams with the funding they need to buy established Welsh small and medium-sized businesses (SMEs) when their current owners retire or sell up.
Launched by Economy Minister Edwina Hart, the Wales Management Succession Fund aims to help 20 Welsh SMEs create and safeguard over 1,000 jobs under new ownership.
Managed by Finance Wales, 5 – 7-year debt and equity investments of between £500,000 and £3million will be available from the new fund.
Finance Wales has already made succession investments totalling £42 million from its existing funds to help new owners buy 127 established Welsh SMEs and demand for this type of investment has increased in the last 3 years.
The Minister said:
“Established small and medium-sized businesses have skilled, loyal workforces and make a significant contribution to the Welsh economy. They have often traded successfully for many years and have the potential to achieve even greater success in future.
With an increasing number of Welsh business owners looking to retire or sell their businesses, the Wales Management Succession Fund will provide aspiring new owners with the funding they need to buy these indigenous businesses and drive them on to even greater success.”