Funding partner of the domestic sme sector

For supporting non-family takeovers, domestic and international merges and acquisitions helping companies to exploit their scale efficiencies and improve their competitiveness and growth potential in Hungary.

Our funding solutions

Generational Shift

Generational Shift

KKVPRO generational shift programme enables family businesses affected by the challenge and problem of succession - if thenon-family succession is their only option - to be sold in an organized way to internal or external business management or to investors in order to preserve the operation of the businesses.

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Market consolidation

Market consolidation

The goal of our KKVPRO market consolidation programme is to accelerate the acquisition activities of the Hungarian SME sector mostly through industry-related acquisitions and to exploit the scale efficiencies of these mergers and other synergies.

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Foreign Investment Promotion

Foreign Investment Promotion

The KKVPRO foreign investment promotion programme aims to fund the international and regional expansion of small and medium-sized domestic enterprises by acquiring majority stake in a foreign company.

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About the funding

Funding in numbers

Funding in numbers

Fund to be raised: 50 million - 1 billion forints per transactions

Expected yield: 10-15% p.a.

Ownership: minority ownership
Own contribution: preferably 30% of the deal size
Investment horizon: 3-8 years (max 10 years)
Preferred structure: closed-end

 

Targeted enterprises

Targeted enterprises

Traditional small and medium-sized enterprises established in Hungary

Revenue: maximum of 15,5 billion Ft

Balance sheet total: maximum of 13,5 billion Ft

No. of employees: maximum of 250

Funding process

Online application

1. Online application

Meeting the investment manager

2. Meeting the investment manager

Revision of business plan, market analysis and business valuation

3. Revision of business plan, market analysis and business valuation

Presenting the investment pitch

4. Presenting the investment pitch

First round decision

5. First round decision

Meeting the investment director

6. Meeting the investment director

Term sheet negotiation and microanalysis of the project

7. Term sheet negotiation and microanalysis of the project

Decision by the Investment Committee

8. Decision by the Investment Committee

Legal and financial monitoring

9. Legal and financial monitoring

Signing the investment agreement and funding

10. Signing the investment agreement and funding