Hi Ketan,
One of our brands is "FrenchEntrée" and we rank for all permutations in Google - French Entree, FrenchEntree, French Entrée, etc even though we never separate the two words. 'French entree' is a term widely used and means a starter (of a meal) so it certainly can be done. I think the reason that we rank for both is because of the general keyword usage of the word "French" around the site, and also because of the domain reputation we have built up. If either of the two words individually in your client's name is considered a relevant keyword, then I think you're more than entitled to use it in places, on it's own.
What will also help over time will be the back links from other sites. Some with write "Great Company", some "GreatCompany" and some "Other anchor text, from GreatCompany". This co-occurance will hopefully build up value for both versions of the brand name in search.
I would suggest that you never de-value the brand by putting a space between the words - stick to the brand's real name and only ever use this. This will be best from a user's point of view, and eventually the search engines will catch up.
Good luck.
Matt