David Greene of Bibby Financial Services shares funding advice for Munster SMEs considering an acquisition, merger, management buyout or ownership transition

Are you considering a merger or acquisition transaction for your business this year? If so, you are not alone as nearly two thirds of Munster SMEs are exploring M&A activity at the moment

David Greene, Sales Lead - Munster Region, Bibby Financial Services Ireland outlines some advice for those considering an acquisition, merger, management buyout or ownership transition

Despite continued cost pressures and economic uncertainty, growth remains firmly on the agenda for businesses across Munster. Our research shows that 63% of Munster SMEs are exploring merger or acquisition activity for 2026, signalling clear ambition across the region. 

That ambition sits within a wider picture of commercial confidence. Eighty-six per cent of Munster SMEs are optimistic about their prospects for 2026, while 82% expect sales to rise over the next six months. However, confidence does not remove the need for discipline. Rising costs, tighter margins and more difficult access to finance mean businesses must consider not only whether a deal is strategically right, but whether the funding structure will leave sufficient headroom for the combined business to perform. 

Across the Munster market, acquisition opportunities can arise for several reasons. An established business may be seeking a route to succession. A management team may see an opportunity to acquire the company it already runs. Other businesses may pursue a competitor, add capability or enter a new market. Whatever the motivation, the transaction must work operationally as well as strategically. 
One of the most important considerations is therefore not simply the source of funding, but the overall funding structure. Many transactions use a combination of traditional debt or equity, asset-based lending and Invoice Finance. A blended structure can help fund the purchase while protecting the working capital needed for integration, staff, suppliers and day-to-day trading. 

This matters because completing the acquisition is only the beginning. The enlarged business may face integration costs, longer payment cycles, increased payroll, new supplier commitments and investment requirements. If all available cash and borrowing capacity are absorbed by the purchase price, an otherwise sound transaction can place unnecessary pressure on the business immediately after completion. 

Invoice Finance can form part of the solution by releasing cash tied up in eligible customer invoices. Rather than waiting 30, 60 or 90 days for customers to pay, a business may be able to access up to 90% of an eligible invoice's value, typically within 24 hours. The remaining balance, less an agreed fee, becomes available when the customer settles the invoice. 

Invoice Finance is a revolving working-capital facility linked to trading activity. As customers pay and new invoices are raised, availability is replenished. This means the facility can grow alongside eligible sales, helping the business manage the changing working-capital requirements that can follow an acquisition, management buyout or ownership transition. 

The key benefit is flexibility. A properly structured facility can reduce reliance on additional acquisition debt and preserve liquidity for the priorities that will determine whether the transaction succeeds, including retaining employees, supporting customers, paying suppliers and investing in the combined operation. 

A recent transaction illustrates the role blended funding can play. A services group required €4 million towards the €5 million acquisition of a competitor. The business could sustainably support €2 million through a bank facility. Invoice Finance formed part of the wider package, providing a further €2 million towards completion while preserving working capital for the ongoing needs of the business. 

The lesson is that acquisition funding should not be assessed solely on whether it gets the deal across the line. Businesses and their advisers should test what liquidity will remain after completion, how quickly the combined sales ledger will convert to cash and whether the funding structure can accommodate integration costs and future investment. 

The right structure will vary from one transaction to another. Traditional banks, alternative lenders and specialist funders each have an important role to play. Early collaboration between the business, its advisers and prospective funders can create a more resilient package, built around the trading profile and cashflow needs of the business rather than the limitations of a single product. 

In a more uncertain trading environment, the strongest acquisition structures are not necessarily those that maximise leverage. They are the ones that allow the business to complete the transaction while retaining enough working capital and financial flexibility to deliver the growth, continuity or strategic value that prompted the deal in the first place. 

Considering an acquisition, management buyout or ownership transition? 
Understanding the right funding structure can be just as important as identifying the right opportunity. Explore Bibby Financial Services Ireland’s guide to funding business mergers and acquisitions, including how working-capital solutions can complement traditional debt. 
 
About Bibby Financial Services Ireland:
Bibby Financial Services is Ireland’s largest independent provider of financial funding solutions to Irish SMEs. Operating across the island of Ireland for 20 years, the company, on average, facilitates over €1m+ a week in new funding limits – in addition to the millions in weekly payments to existing clients - to enable a range of scenarios including cashflow funding, growth and expansion, management buy-ins and buy-outs, refinancing, corporate restructuring and mergers and acquisitions.
 
A people-led business, the Bibby Financial Services team of 35+ experts offer support to businesses with a turnover from €750,000. Sectors serviced include Manufacturing, Wholesale, Food and Beverage, Transport, Construction, Recruitment and a variety of professional business services.
Bibby Financial Services is a proud member of Guaranteed Irish, the national organisation that champions indigenous and international businesses in Ireland which support jobs, communities and provenance. Having this national symbol of trust is a testament to nearly two decades of unwavering commitment to employees as well as businesses in Ireland.
 
Bibby Financial Services Ireland is part of Bibby Financial Services Group, an independent financial services partner to over 10,000 businesses across 14 countries. The Irish operation was established in 2006 and has an expert team of 30 employees based in Sandyford, Dublin.
 
For more information about Bibby Financial Services Ireland, please visit: www.bibbyfinancialservices.ie