Looking for a healthcare lender for dental service organization (DSO)

searcher profile

August 27, 2021

by a searcher from Santa Clara University - Leavey School of Business in Redwood City, CA, USA

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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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Hello Narsai. I would be more than happy to discuss options for you. We are a Commercial Loan Brokerage shop and have financed many dental transactions over the years, including some DSO from startup. I would be more than happy to go over the options available. We have over 350 funding partners we work with including banks, credit unions, SBA lenders, and non-bank lenders as well. You can reach me at redacted Have a great weekend!
commentor profile
Reply by a lender
in Yorba Linda, CA, USA
Hi Narsai, we have a large Dental industry vertical here at Live Oak, and we are specialists in DSO's. We like getting involved early, and would welcome a call to walk through your strategy and learn about you and your team. Please send me an e-mail if you're interested and I'll get the call set up. redacted
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