How many businesses that have received support from the Development Bank of Wales for succession processes have ultimately closed or relocated outside of Wales?
Since its inception in 2017/18 through to the end of the 2022/23 financial year, the Development Bank of Wales has funded 199 succession investments worth over £72.4m.
The objective of the Development Bank’s succession activity is to preserve viable Welsh businesses by supporting transfer of ownership, safeguarding both the business activity and jobs where the outgoing owner is unable to access funding elsewhere, or where the business would otherwise be relocated. A condition of its investment is that a business must remain in Wales for the life of its investment term, which can be up to 10 years.
For the duration of its investment the business will be allocated a specific portfolio executive who will work with the business to maximise its growth potential. By its nature, this has the additional effect of rooting the business in the Welsh ecosystem through supply chain networks, professional advisers and wider localised benefits- working closely with the sector/regional teams in WG.
This relationship also ensures that early warning signs of business difficulties are picked up and addressed, supporting the business to access the help it may need. This includes the Development Banks internal risk team and Recovery Support Group. Of the 199 businesses, 10 are no longer trading.