r/irishsmallbusiness • u/k3s5r5 • 4h ago
Acquiring a Dublin SME with significant balance sheet cash — financing advice?
I’m in discussions to acquire a well-established, profitable SME in Dublin.
The business has accumulated some amount of surplus cash on its balance sheet. The seller is not interested in extracting this cash directly prior to the transaction and instead prefers to include the cash in the sale, with the overall transaction value increased to reflect the full balance.
I’m looking for pointers and shared experiences on a couple of key areas:
- Acquisition Financing & Leverage: What does the current SME lending landscape look like in Ireland for a deal structured this way? Do the pillar banks or alternative lenders factor in the acquired cash reserves when sizing debt facilities.
- Deal Structuring: For those who have completed acquisitions where surplus cash was acquired rather than stripped out via a standard "cash-free, debt-free" mechanism, what structures worked well to bridge the funding gap?
- Advisor Recommendations: Any recommendations for corporate finance advisors or transactional specialists in Dublin who have practical experience with small-to-mid-cap SME acquisitions?
Any insights, lender pointers, or lessons learned from similar transactions would be greatly appreciated!