LOOKING FOR A HEALTHCARE LENDER

We and a dentist operating partner are teaming up to start a dental service organization (DSO) with the goal of acquiring pediatric dental practices and holding them for the long term. We are close to a LOI on our first practice and have a few other practices in the pipeline. As we explore debt opportunities for the initial 3-5 acquisitions, we have found that a number of lenders either don't get involved this early or if they do get involved they will require joint and several personal guarantees (which we would prefer to avoid if possible). Another option we have discussed is to fund the first acquisition with 100% or equity plus a seller note, and to approach a lender once we have proven the model.

Does anyone have an experience of feedback navigating sponsor financing for a healthcare business?

Similarly, we would love to talk to or get connected with any lending partners that may be interested in financing our first few acquisitions, and preferably beyond as we plan to grow this business for the long haul.

Thank you in advance!



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