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France, long considered a land of opportunity for entrepreneurial acquisitions, has just taken a decisive step to address one of its most pressing economic challenges: SME succession, which has become a demographic and economic imperative. Currently, 41% of SME leaders in France say they intend to transfer their business within the next five years. Last week, Bpifrance, the French public investment bank, unveiled a comprehensive national plan aimed at unlocking the market for SME transfers. For SFs entrepreneurs and investors, this could be a game-changing development.
Recognizing the urgency of this situation, Bpifrance has launched an ambitious initiative to increase the number of SME successions and improve the quality and success rate of these transitions. The plan includes:
- New financial instrument: The cornerstone of the initiative is the Prêt Croissance Transmission(Growth Succession Loan), an unsecured loan of up to €5M, aimed at financing the acquisition of SMEs and mid-caps. This complements existing Bpifrance tools such as zero-interest loans, equity injections, and guarantees for acquisition financing.
Loan terms:
- Amount: Between €50k and €5M
- Duration: From 3 to 7 years
- Grace period: Up to 2 years for principal repayment
- Purpose: To support SME and mid-cap business transfers
- Fixed interest rate based on Bpifrance’s current rate schedule
- Processing fee: Minimum 0.40% of the loan amount
- No collateral required on company assets or the personal assets of the manager
- Only a 5% guarantee reserve is withheld from the loan amount. This amount is refunded in full upon complete loan repayment, along with the interest it has accrued.
- Death / Total and Irreversible Loss of Autonomy insurance on the company’s manager is required.
- Leverage ratio: 1 (equity) for 1.5 (loan)
- Expanded advisory services: Bpifrance is enhancing its seller support programs to encourage more owners to prepare for succession in a structured way. This includes pre-sale advisory services and greater integration with its Bourse de la Transmission (Business Transfer Exchange), a platform listing over 46,000 companies for sale across France.
- Buyer support and post-acquisition guidance: Critically for searchers, Bpifrance is also strengthening its post-acquisition advisory offering—helping new owners assess the acquired business, define governance structures, and optimize operations.
- Regional awareness campaigns: Local teams will roll out regional roadshows and educational events to promote business transfers, increase visibility, and connect sellers and buyers more effectively.
“Business transfer is a vital issue for our economy. Yet over the past 20 years, we have seen a steady aging of SME and mid-cap executives and, paradoxically, a decline in the number of business transfers. This leads to job and value losses in our regions. For this reason, Bpifrance aims to make business succession a strategic priority in 2025. Although we are already very active in this segment, we want to strengthen our support for buyers and raise awareness among SME and mid-cap leaders about the need to plan ahead for the sale of their businesses. Anticipating a transfer is key to maximizing the chances of continuity and success for these companies,” declared Eric Versey, Executive Director of Bpifrance, in charge of Financing and the Regional Network.
This initiative is not only a macroeconomic signal, but a strong institutional endorsement of the core idea behind SFs: the professionalization and acceleration of SME ownership transfer. This could lower the equity burden for acquirers and enable more flexible deal structuring.
France is open for business, especially if you’re ready to take the reins.
