Marc Tensi is the third generation to run a painting and decorating business in Düsseldorf. (Photo: © private)
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July 1, 2023
When companies are handed over to a successor, it's not just an emotional decision, but often also a financial challenge. NRW.BANK knows how to make the transition a success and what's important.
Marc Tensi is still young, but already the proud owner of an established craft business in Düsseldorf. He is the third generation to run the painting and varnishing company , which was founded by his grandfather in 1954.
"Founding my own smaller business was out of the question for me," says the master painter. "On the contrary: I am very proud to be able to continue what my father and grandfather built . It has always been my dream to carry on the family tradition."
Marc Tensi helped out in the family business from a very young age. Even during his school years, he knew he wanted to follow in his family's footsteps. When he told his father about it, his father initially advised against it: wallpapering apartments, plastering facades, painting walls – all of this was hard work . There were easier ways to earn money, he said. But the younger Marc persevered; after finishing school, he completed an apprenticeship as a painter and decorator and successfully passed his master craftsman's examination in his early twenties . Joining his father's business was now a foregone conclusion, and he gradually took on more and more responsibilities. The generational transition took place step by step, in a smooth and seamless manner.
The financial handover, however, raises significantly more complex questions: What is the company's current value? Which transfer method is most suitable? How can it be financed? This is where NRW.BANK comes in. They understand the issues involved in succession planning and the challenges faced by young entrepreneurs in particular.
Operations management
Operations management
Operations management
Whether it's a loan, equity financing, or consulting – the range of options is extensive and can be tailored to individual needs. In Marc Tensi's case, the financing package put together by the development bank for North Rhine-Westphalia in conjunction with his primary bank consists of a low-interest start-up loan from the NRW.BANK.Start-up and Growth funding program, ERP start-up capital from KfW, and a guarantee from the NRW Guarantee Bank, which assumes part of the risk for the primary bank.
QUOTE "Whether a new business is being founded, a succession plan is being developed, or an established company is being expanded: In North Rhine-Westphalia, every promising idea should find the right financing." Eckhard Frost , CEO of NRW.BANK
One thing is certain: When planning for succession, it's always worthwhile to seek advice from the experts at NRW.BANK. Besides the challenges, they also recognize the opportunities that a transfer of ownership can offer to future-proof the business and resolve investment backlogs. Digitalization and sustainability often present additional opportunities that can be leveraged during an acquisition.
With the help of NRW.BANK, Marc Tensi is now successfully running the family business as owner, and who knows – perhaps one day he will hand it over to the fourth generation of the family.
Founders can receive support from NRW.BANK with loans, equity capital, and funding advice. Important: Apply for funding first, then invest. If projects are already underway, no funding is available.
✓ Write a business plan: It serves as a script for your startup project. In it, you present your business idea and develop a comprehensible financial plan for your investors.
✓ Use advice: Contact the NRW.BANK funding advisory service, one of the STARTERCENTER NRW or a chamber.
✓ Contact your bank: Present your business plan there and clarify funding options and the question of collateral.
✓ Apply for funding: After your credit check and approval by your bank, you apply for the funding with your bank. Your bank then submits the application to NRW.BANK.
✓ Conclude a loan agreement: After your application has been reviewed, you conclude the loan agreement with your bank.
✓ Use grants: There are numerous funding opportunities available at local, district and federal levels, as well as at the federal and EU levels.
✓ Get investors on board: Share the risks of a startup plan with investors. The spectrum ranges from business angels to dedicated startup or founder funds.
✓ Implement projects: Start your project.
Would you like to learn more about NRW.BANK's funding opportunities?
www.nrwbank.de
Start: It all starts with a business idea and a good business plan.
Assistance: A development bank can provide financial start-up assistance.
Pilot: Your bank will direct you to the development bank, help you with the application, and submit it there.
Growth: Development banks offer support for every phase of a business.
DHB is now also available digitally! Simply click here and register for the digital DHB!
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