£1.2m Somerset acquisition structured across a HoldCo and a PropCo

A Somerset dentist purchasing a four-surgery practice needed a structure separating the business from the property, goodwill through a HoldCo, freehold through a PropCo. We packaged both applications as one connected case for the lender. £1.2 million was secured across both facilities, completing in nine months.

The Situation

A dentist purchasing a four-surgery mixed NHS and private practice in Somerset needed a structure that clearly separated the operating business from the property it sat in. The goodwill was to be funded through a new holding company via a share purchase, while the freehold sat in a separate property company, a structure that offers real long-term benefits, protecting the property from trading risk and offering flexibility for the future, but needs to be packaged carefully to satisfy a lender’s requirements on both sides at once.

What We Did

We packaged the commercial loan applications for both entities together, aligning the narrative and structure for the HoldCo and PropCo facilities so that a lender assessing one could see exactly how it related to the other, rather than reviewing two seemingly unconnected applications that might otherwise raise more questions than they answered. Presenting both facilities as one coherent, lender-friendly package was the key factor in getting each approved without the kind of back-and-forth that split structures often generate when lenders are left to work out the connection themselves.

The Result

Funding was approved across both facilities, approximately £800,000 for the goodwill purchase through the HoldCo, and £400,000 for the freehold through the PropCo, £1.2 million in total. The transaction completed in nine months.

The wider lesson: a HoldCo/PropCo structure is genuinely useful for separating trading risk from property ownership, but it only works smoothly at the finance stage if both facilities are presented to the lender as one connected story. Treat them as two unrelated applications, and you invite exactly the kind of delay this client avoided by having the structure explained clearly from the outset.

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