Hello,
If its a profitable business, with a sustainable business model and relatively assured cashflows, then Banks will consider lending to help you finance it.
You will want to speak with someone on a Business Banking Team - the three Irish Banks all have these teams, albeit PTSB is relativity new to this space etc. Some non Bank lenders may also be able to assist, albeit they tend to be more expensive.
Typically a Bank will want to see you put some equity into the deal, often around 30% of the acquisition price.
Fixed asset security will be attractive, and help you to secure a lower loan rate, but is not essential, once the trade is good enough.
If there is fixed asset security, you'll probably be able to get a loan, repayable over between 10-15 years. If there is no fixed asset security, the loan term will likely be between 3-5 years (although in some cases, you may get up to 7 years).
Depending on circumstances, you may also be able to leverage off the trade debt in the business, but this may not always be an option, or an appropriate risk.
Expect to have to provide a personal guarantee, albeit the amount may be open to negotiation, depending on the particulars of the business.
Also expect to be asked to provide a Debenture (Floating Charge over the Assets), if its a company.
Restrictions on drawings will also likely be a feature of any loan, so that loan repayments take preference over the owners ability to extract all profit from the business.
How have you agreed the purchase price? Most business es would be valued on a modest multiple of sustainable earnings (a bank will typically exoect to see an accountants independent valuation, although in certain sectors, other professionals are recognised as having ability to support valuations). Not every industry sector will use profitability, to value the business, but as a starting point, I'd be encouraging you to take use it, and aim for a range of 3-5 times sustainable earnings (the multiple tends to be higher, where there are higher profit margins, less risk of competition etc etc).
Depending on the nature of the business, you may well want to get an accountancy firm, or other suitable third party to help you with the due diligence, before you purchase the business. You clearly want to ensure that there are no surprises coming down the track - things like potential litigation, issues with Revenue, new competition, risk to the service or product becoming obsolete, the need for non compete agreements with the seller etc etc.
