#Japan #Tokyo #Business Succession #Subsidy Program

Business Succession Support Subsidy Announcement

Tokyo has initiated a crucial subsidy program designed to facilitate business succession among local small and medium-sized enterprises (SMEs). Recognizing the significance of understanding a company's value as a driver for succession planning, the Tokyo Metropolitan Government is providing financial support for various costs associated with business transition activities, effective from the 2024 fiscal year.

Overview of the Subsidy

This program includes multiple types of support tailored to the different contexts in which businesses may find themselves regarding succession planning:

Type A: For Companies Without Designated Successors

For businesses that intend to hand over their operations through mergers and acquisitions (M&A) or to third parties, this subsidy type covers expenses for:

• - Corporate valuation costs
• - Fees for financial advisors or M&A intermediary services

Type B: Succession Within Families or Among Employees

This type is aimed at companies wishing to transfer ownership to family members or employees. Eligible expenses include:

• - Costs associated with corporate stock valuation
• - Fees for external experts in inheritance procedures
• - Expenses for securing and training key personnel, including the use of recruitment agencies or training programs

Type C: Support for Continued Business Operations

Designed specifically for companies that have engaged in public