Finance for acquisitions

Helping you acquire your business

In this blog, we explain what acquisition finance is, how it works, and how it can help professionals such as dentists, opticians and vets, take the next step on their growth journey.

What is an acquisition?

Very simply, an acquisition involves a firm purchasing a controlling interest in another company.

How many acquisitions take place in Ireland every year?

Acquisitions are a very common method for company owners in Ireland to grow their businesses, they are also very useful when looking for a way to purchase your first business.

Many acquisitions happen each year, although numbers fluctuate depending on various factors, from current business confidence and interest rate levels to geopolitical factors.

The professions market in Ireland is seeing consolidation, with larger groups acquiring smaller practices to expand their networks and enhance service offerings.

Who typically makes an acquisition?

Acquisitions are used by various business types - from entrepreneurs and small to medium-sized enterprises (SMEs) to large corporations - as a way to expand their operations, enter new markets, or buy new technologies and expertise.

What is acquisition finance?

Acquisition finance, also known as mergers and acquisition (M&A) financing, involves raising funds to buy a business. This can mean buying the whole business or just part of it by purchasing some of its assets and shares.

This funding is typically provided by banks as a business loan.

How does business acquisition finance work?

When a business decides to acquire, it often involves a leveraged buyout (LBO).

In an LBO, the acquiring company uses the money they have borrowed - secured against the assets of both the acquiring and acquired companies - to finance the purchase.

This allows the company making the acquisition to make a significant purchase without using a large amount of its own capital.

Example of how we have supported our customers

An optician in Ireland offered their optometrist a 20% joint venture partnership buy-in for €400k. The optometrist sought funding to pay for the shares, and we provided a business loan to complete the purchase. This is a common scenario where we have supported our customer’s business growth, and ownership transitions.

If you are considering investing in an established practice or business, or planning to start a new venture, please contact our team.

In the Republic of Ireland, business loans are only available to incorporated entities - limited companies.

Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.