Business Transfers constitute a critical milestone in business development, the importance of which is often underestimated. Numerous studies suggest that, in effect, business transfers constitute a “high risk – high return” procedure: mainly due to the amount and the diversity of parameters involved, often, business transfer attempts cannot be concluded successfully. Furthermore, even in the case of concluded transfers, osmosis of future (to-be) visions & targets with existing (as-is) affairs is not always successful. Hence, business transfers may lead to dismantlement of business units, contraction of activities, disillusionment of human resources and loss of value both for the immediate stakeholders (buyers, remaining personnel, customers, suppliers) and the society as a whole.

On the other hand, if successful, business transfers may lead to economies of scale, horizontal and vertical integrations, accumulation of valuable know-how, enhanced synergies, increased competitiveness, employment, turnover & profits.

Transfer of business needs to be placed within the larger context of EU objectives to promote smart, sustainable and inclusive growth. This particular call aims to support the implementation of the Small Business Act (SBA) where business transfers are specifically mentioned under the first principle: “To create an environment within which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded. In the SBA Member States are specifically invited to: ensure that taxation does not unduly hamper transfer of business, put in place schemes for matching transferable businesses with potential new owners and to provide mentoring and support for business transfers.

The SBA review conducted in 2011, found that overall implementation is progressing but more still needs to be done. Transfer of businesses, when successful, on average secures a higher number of jobs than those created by new start-ups. Particular recognition should be given to family businesses because of their typically local base, socially responsible attitudes, and balanced combination of tradition with innovation. As regards business failures, it was pointed out that about one third of business failures occur in the context of a business transfer. In response, the Commission undertook to identify best practices to support business transfers and launch a campaign to promote these practices, and invited Member States to develop user-friendly and widely supported marketplaces and databases for transferable businesses and provide training and support to increase the number of successful business transfers, including communication campaigns to raise awareness of the need for early preparation of business transfers.

Currently these issues are at the very heart of the Europe 2020 Strategy and the associated Flagship Initiatives that provide a focus for policy development at a European level. In particular, these strategic frameworks very much define the context for actions intended to promote an improvement in the framework for business transfers. Such actions however, also need to take into account a relatively well-established legacy resulting from earlier initiatives related to transfer of business launched at both European level and in the Member States (Commission Communications of 1998 and 2006 , recommendations from different projects, studies and seminars related to transfer of business that has been carried out between 1994 to date ).

In the past ten years, a number of studies have highlighted the need for SME owners that intend to transfer their business to plan and prepare correctly for this event and therefore to have access to professional support during the transfer of their business when needed. Not only does a successful transfer require an understanding of an array of organisational, financial, fiscal and legal issues, it is also likely to put those involved under significant emotional pressure. Potential buyers may also need quality support.

Today, the availability of business support specifically relating to transfer has still considered either low or moderate. In several countries there appears to be very little support, there are few national programmes that have been successful in tackling the business transfer market as a whole, initiatives have often been instigated for one particular transfer phase, at local or regional level or they have been short-term projects. In some countries, the initiatives that are available are mainly organised privately.

The lack of data on business transfers is also an issue of concern as it may results in a lack of support for governments to produce and implement specific policies to facilitate business transfers. Within this context, it becomes clear that there is a lot of potential value in creating a common approach, methodological tools and indicators, leading to the development of a regular common monitoring mechanism for business transfers in Europe.

This initiative is based on the Commission Implementing Decision C(2013) 8202 of 26.11.2013 amending Implementing Decision C(2012) 9442 concerning the adoption of the 2013 work programme for the implementation of the Entrepreneurship and Innovation Programme, pursuant to European Parliament and Council Decision No 1639/2006/EC establishing a Competitiveness and Innovation Framework Programme — CIP (2007-2013).