Financing dental practice

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June 30, 2022

by a searcher from Vrije Universiteit Brussel in Amsterdam, Netherlands

Does anyone know which institutions like to lend for the acquisition of dental practices. EBITDA multiples are high, however dental practices provide a stable cashflow. Does anyone have experience in this field?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
It really depends on who is buying the practice. If it is being bought by a doctor it can be done in the practice financing group of most larger banks. However, if it will not be doctor owned and owned by a DSO, then you really need to go with another funding source as this usually will not qualify with the practice finance groups. Happy to talk through options at any time. We are a commercial loan brokerage firm and have over 350+ funding partners and years ago I used to run a dental financing division for a Bank so I have significant experience in this area.
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Reply by a searcher
from Washington University in St. Louis in Chicago, IL, USA
@Yasin- I wondered if you are searching in the US. US has very strict CPOM (Corporate practice of medicine) laws that prevent non-medical individuals from owning medical practices. And the laws vary a lot by individual state. Look into them and consult a lawyer that specializes in CPOM laws. You can form an MSO to get around in some states but it's difficult unless you have very large funding and if the Dental practice ismulti-locationn group practice and not a solo practice.
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