Read the story of how a Brokerplan business partner can add value to a client, whilst generating gross fees of £42k at the same time!
Dental Practice – Based in Southall, London
The client, a dentist, had owned his practice since 1994 and has extended it over the years by purchasing the 4 adjoining premises for it to become one of the largest dental practices in the UK.
He had also set up a Dental training school operating from within the premises as well as 10 dental surgeries. The practice has been refurbished to a very high standard and has one of the largest NHS contracts worth £1.4m p.a.
The business was valued by Christies at £5.1m in 2015 and the client also owned the freeholds valued £1.6m.
The client was looking to plan his impending retirement with a view to providing a succession/restructure 2nd generation loan to include his children as directors. His son, who is also a dentist, was working as an associate within the practice as well as his 2 daughters who are both GPs.
The client had banked with Barclays since day 1 and owed around £2.8m.
Although Barclays were reluctant to support the restructure, Lloyds were keen to speak with him and they offered terms which included adding the children as new directors.
Details of Funding
- £3.1m loan in 2 x tranches
- £1.9m loan to practice – Arrangement Fee – £14250 – Commission – £7125
- £1.2m loan to dentist – Arrangement Fee – £9000 – Commission – £4500
Actual Rates Undisclosed, but circa 2.5% inc base
- Total commissions paid by lender – £11625
- Broker fee undisclosed (@ 1% this would generate £31k)
- Potential gross fees – £42625
The case started in November 2017 and the £3,100,000 deal with Lloyds completed in May.
Dealing with the High Street can at times seem like pulling teeth, but, for the right clients the rates are generally still the keenest and commissions for the broker in such cases can result in a Simon Cowell smile.
Would You Like to Know More?
Receive more information about this franchise opportunity direct from the franchisor by clicking the link below:
Add to Request List There is no cost or obligation associated with this service.Key Facts:
- Available across the UK
- Business Opportunity
- £6,995
- Yes
- Yes
- Yes
- 249
- Yes
- From £249 per month
- Bespoke
- 120000
