The Ministry of SMEs and Startups said on the 24th it will announce the Consulting Support Program to Activate Business Succession M&A to help smooth succession for small and mid-sized corporations.
The Ministry of SMEs and Startups (MSS) is pursuing policies to promote business succession through M&A to maintain the management environment of small and mid-sized corporations and support their growth.
Before an M&A negotiating counterparty is identified, basic preparations must be made, including establishing buy-sell strategies, assessing corporate capabilities and preparing introductory materials, and conducting market research and information searches. Once the negotiating counterparty is identified, expert assistance is needed for processes such as ▲corporation valuation ▲due diligence ▲negotiation and contract drafting.
To support the M&A process, the Ministry of SMEs and Startups (MSS) plans to operate the program in two types: basic consulting and comprehensive consulting. Considering that the consulting support targets M&A for business succession, MSS will evaluate conditions such as the seller-side corporation CEO's age (55 or older) and the absence of a family succession plan, and will select 100 corporations for basic consulting and 40 corporations for comprehensive consulting.
Once selected as a support recipient, a corporation can receive consulting tailored to its situation through a business succession M&A brokerage agency with expertise in M&A brokerage and advisory services.
The Korea Technology Finance Corporation (KOTEC), which will carry out the support program, will select and register a total of 14 entities—including accounting firms, law firms, and consulting companies with extensive M&A advisory and brokerage experience—as "business succession M&A brokerage agencies" to provide consulting.
The Korea Technology Finance Corporation (KOTEC) will announce detailed information about the program on the 25th and begin accepting applications starting on the 1st of next month. Small and mid-sized corporations interested in the program can apply through the Smart Tech Bridge website. For program-related inquiries, contact the KOTEC M&A Support Center.
Kim Dae-hee, director-general for SME strategy planning, said, "We expect this consulting support to create an environment where small and mid-sized corporations can more easily approach and attempt M&A, serving as an opportunity to broadly uncover demand for M&A aimed at business succession."