Young Entrepreneur Takes Over Company – How to Successfully Finance It
Taking over an existing company is an attractive alternative to starting a new business for many. But what do you do when you start as a young entrepreneur without equity?
In this article, you will learn how to finance the takeover of an existing company as a successor – using funding programs, bank loans, and smart alternatives.
Why Banks Often Prefer Financing Successions Over Startups
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Existing revenues & customers
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Experienced employees
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Proven processes
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Greater planning reliability
Banks view such structures positively – even if you, as the successor, do not yet have an entrepreneurial track record.
Financing Options Available to You
Bank Loan Based on Cash Flow
Monthly repayments are covered by ongoing profits. Prerequisite: clean financials & a viable business plan.
Test now: How much loan can I afford? – To the calculator
Public Subsidized Loans (e.g., KfW, LfA, NRW.BANK)
Advantages:
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Long terms
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Low interest rates
Note: In some cases, 100% of the purchase price can be financed.
Equity-Like Investments (e.g., MBG, Hightech Gründerfonds)
Equity-like capital without immediate repayment – ideal as a supplement for purchase prices over €500,000.
How to Obtain Financing Without Collateral
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Guarantee banks replace missing collateral
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Seller loans or earn-out models reduce initial financing needs
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Combine funding sources (loan + equity + guarantee)
Conclusion
As a young entrepreneur with drive but limited capital, you still have a real chance of a successful takeover. The key is the right financing mix.
Use our business succession loan calculator to calculate your financing now and plan strategically.