The application schedule for the Business Succession and M&A Subsidy (12th Call) for fiscal year 2025 has been announced. This subsidy program is designed to support small and medium-sized enterprises facing issues such as business succession or aiming for regrowth through M&A. By utilizing this subsidy, companies can significantly reduce expenses necessary for succession or M&A procedures. However, as applications are subject to strict deadlines and require thorough preparation, it is crucial to gather accurate information in advance and proceed with appropriate measures according to the schedule.
- Understanding the Purpose of the Business Succession and M&A Subsidy
- Detailed Application Schedule for the 12th Call 2025
- What to Prepare Before Application
- Key Strategies for Smooth Preparation
- Summary and Points of Caution
- Supplementary Information for Smooth Applications
- Additional Practical Advice for Applicants
- Additional Preparation Guidelines for Efficient Application
- Conclusion
Understanding the Purpose of the Business Succession and M&A Subsidy
Supporting Smooth Business Succession and Revitalizing SMEs
The Business Succession and M&A Subsidy exists to support small and medium-sized enterprises facing challenges in succession or growth through M&A. Many SMEs struggle to secure successors due to declining birthrates and aging populations. Additionally, acquisitions often involve significant costs, making it difficult for companies to advance plans.
This subsidy aims to financially support necessary procedures, including costs for specialists, advisors, and restructuring-related expenses, to ensure that companies can smoothly carry out succession or M&A activities, thereby contributing to regional economic revitalization and employment stability.
This policy addresses Japan’s structural issues, particularly the need to prevent viable businesses from closing simply due to succession problems. Through this subsidy, the government encourages strategic succession and restructuring efforts. Businesses using this subsidy are expected to achieve growth while contributing to regional industries. Furthermore, maintaining employment through business continuity is regarded as an essential point in the selection process, which strengthens the public interest nature of this subsidy.
Detailed Application Schedule for the 12th Call 2025
Confirmed Application Period and Deadlines
| Application Period Start | Application Period End | Deadline Time |
|---|---|---|
| August 22, 2025 (Friday) | September 19, 2025 (Friday) | 17:00 (planned) |
This schedule is provisional and subject to change. Confirming the latest updates through official announcements is necessary. Applications will not be accepted after the deadline under any circumstances, so careful management of internal preparation timelines is strongly recommended.
What to Prepare Before Application
Necessary Documents and Information Required
To apply successfully, it is essential to prepare a range of documents in advance. Required documents include corporate financial statements, succession or restructuring plans, business plans showing future profitability, and legal agreements related to M&A. Additionally, certain cases may require submission of certifications or statements from experts such as certified public accountants or tax accountants.
Incomplete documents or mistakes in details will cause delays or rejection. Checking all contents for consistency and accuracy is critical. Advance preparation allows time for corrections before submission. Internal checks by multiple personnel are recommended.
| Required Document | Purpose |
|---|---|
| Financial Statements (latest 2 years) | Confirming financial soundness |
| Business Succession / M&A Plan | Showing necessity and feasibility |
| Business Plan (after succession or M&A) | Demonstrating profitability and impact |
| Contracts / Agreements | Confirming legal structure |
| Expert Opinions (if applicable) | Supporting objectivity |
Selection Criteria for Approval
Applications are reviewed for substance. Examiners assess the necessity, feasibility, and expected contribution to regional revitalization and employment creation. Projects lacking feasibility or transparency are unlikely to receive approval.
The evaluation focuses on how well the business continuity and future growth will serve the public interest, beyond mere private profit. Clear articulation of expected outcomes and detailed business plans aligned with subsidy objectives are indispensable.
| Evaluation Focus | Key Checkpoints |
|---|---|
| Business Feasibility | Financial soundness, planning accuracy |
| Contribution to Local Economy | Employment maintenance, industry role |
| Continuity and Stability | Successor readiness, future vision |
| Compliance with Regulations | Proper procedures, documentation |
Key Strategies for Smooth Preparation
Why Early Preparation Matters
Given the brief application window, early preparation is vital. Consultation with experienced professionals can help identify potential issues. These experts can clarify financial structures and prepare documents without omissions.
Delays in preparation often lead to incomplete submissions, rushed corrections, and unnecessary mistakes. Companies intending to apply should ideally begin preparations several months in advance.
Checklist Before Submission
| Checklist Item | Confirmed Yes / No |
|---|---|
| Company name, address, and corporate number consistent | |
| Business description aligns with subsidy objectives | |
| Financial figures consistent across documents | |
| All necessary attachments included | |
| Approval of internal management and board obtained |
Errors or oversights in these areas can lead to rejection even with a sound business plan. Having an external reviewer for a final check is recommended.
Summary and Points of Caution
Aligning Your Timeline with the Official Schedule
Strict adherence to the official schedule is necessary. Missing the deadline due to internal delays will disqualify the application. Companies should create a reverse-schedule timeline from the final submission date to ensure ample time for approvals, documentation, and consultations.
| Key Date | Action |
|---|---|
| August 22 | Application period starts |
| September 19 | Application closes at 17:00 |
Failure to comply results in exclusion from consideration.
Supplementary Information for Smooth Applications
Understanding Common Mistakes from Past Applications
Analysis of previous application rounds reveals common errors such as inconsistent financial figures, unclear objectives, and misalignment with subsidy purposes. Avoid vague descriptions and clearly state how the subsidy will contribute to sustainable business and local economic benefits.
Over-reliance on templates without adapting them to reflect company specifics tends to result in negative evaluations. Crafting original, company-specific plans is encouraged.
Additional Practical Advice for Applicants
Importance of Internal Consensus and Governance
Applications for this subsidy are not only administrative tasks but involve future management strategies. Aligning the application content with mid-term business strategies and gaining consensus among board members will strengthen the credibility of your application.
Internal governance and alignment with strategic direction are often examined indirectly through submitted materials. Applications lacking internal consensus often exhibit contradictions between business plans and financial projections, leading to reduced evaluation scores.
Ensuring consistency between management philosophy, financial strategies, and succession intentions is essential. Internal communication should be thorough. Clarifying how the subsidy will contribute to mid-to-long-term business goals can reinforce the credibility of the application.
Additional Preparation Guidelines for Efficient Application
Points to Confirm Before Final Submission
| Preparation Item | Action |
|---|---|
| Consultation with accountant completed | Confirmed |
| Legal review of documents completed | Confirmed |
| Internal schedule review completed | Confirmed |
| Potential risks considered and addressed | Confirmed |
| Application documents proofread thoroughly | Confirmed |
Final submission often suffers from overlooked details in a hurry. A systematic checklist avoids such risks.
Conclusion
Even if this year’s application is unsuccessful, the experience gained will aid future opportunities. Subsidies change annually, but the basic preparation process remains valuable. Companies should document processes, mistakes, and improvements for future use.
Furthermore, maintaining communication with relevant ministries, local support organizations, and industry groups allows early detection of future programs. Staying informed through seminars and information exchanges is recommended.
Creating templates within the company for subsidy applications will also streamline future processes, reducing preparation time and improving accuracy.
Proactively collecting successful examples from past applicants helps refine internal strategies.
| Future Measures | Expected Benefit |
|---|---|
| Creating internal manuals | Shortens preparation |
| Building relationships with advisors | Improves quality |
| Documenting procedures | Avoids repeat errors |
