Business succession faces major challenges

A 2026 report by the Observatoire du financement des entreprises, published by the Banque de France, estimates that about 500,000 businesses may be sold over the next decade due to the retirement of their managers. The report highlights concerns about business continuity, financing, and job preservation in local economies.

Retirement wave impacts local economies

The potential number of business sales does not include those already in progress. It reflects a demographic shift that will especially affect business services and retail. In some regions, businesses set to change hands due to retirements could make up over a third of the local economic landscape.

Business sales have increased steadily

Since 2022, approximately 37,000 business sales have occurred annually, following a 14 percent decline between 2012 and 2019 and the delays caused by the health crisis. In 2024, only 2 percent of small and medium-sized enterprises were sold, compared to over 13 percent of large enterprises, with retail and catering making up more than half of all transactions.

Value of sales has increased over five years

The report also mentions a 30 percent rise in the total value of business sales over five years. This reflects changes in the business succession market, but not necessarily that each business is 30 percent more expensive. It shows an overall trend in market value.

Challenges go beyond financial hurdles

The difficulties of business succession are not limited to securing credit. Managerial confidentiality, finding a buyer, and the legal, financial, and operational preparation of a sale can prolong the process. Banks offer tools that combine financing, advice, and connecting buyers and sellers. Transmission capital funds can also assist in transactions involving management teams.

New plan aims to support business succession

The Ministry of Economy introduced the Objective Reprises plan in April 2026, developed from the work of the Reprise Mission led by the Direction générale des entreprises (DGE). The plan includes efforts to raise awareness among managers aged 55 and over, connect sellers and buyers, and improve the distribution of existing financing tools.

Financing tools and guidance provided

Among the available tools are the Growth Transmission Loan and the Transmission Guarantee from Bpifrance, which can cover up to 60 percent of eligible financing with banking partners. The Direction générale des entreprises also provides a guide for sellers and buyers, covering preparation steps, legal structures, and support options. The Observatoire emphasizes that early planning is crucial to ensure successful business succession and prevent the loss of viable businesses due to a lack of successors.