Hi there,

Every so often a deal reminds me that the finance is rarely the hardest part. The structure around it is.

A client was acquiring both the goodwill and commercial freehold of an established practice. The finance itself was never in doubt, our finance team had that agreed early. The complication was that the purchase involved two separate companies, one buying the freehold, another buying the shares and goodwill.

That raised real questions. Who is a director of what. What personal guarantees apply, and to whom. Communication between the client and their solicitors got a bit muddled trying to work all this out, which is understandable, this stuff is genuinely confusing if you have not dealt with it before.

Once the team mapped the structure properly and confirmed exactly what guarantees were needed, things moved quickly. Over £1.6 million was secured across both the goodwill and the property, which was a landmark deal for this client.

I say this to clients regularly. If your deal involves more than one company, get the structure clear before you get the finance sorted, not after. It saves weeks of confusion.

If that sounds like your situation, let our finance team map it out properly before it becomes a problem. Get in touch here.

Buy a Dental Practice in the UK

Speak soon,

Arun