When a founding partner announced their retirement, the remaining dentists had ninety days to complete a buyout, or face an outside sale.
The situation
The practice was profitable and well run, but its partners had never borrowed together.
An SBA loan was the natural long-term structure, and it would take longer to close than the buyout agreement allowed.
Our approach
We prepared the SBA application in parallel with a short-term bridge facility, so the buyout could close on the agreed date and the bridge be repaid from the SBA proceeds.
Our reading of the practice's collections also supported a larger long-term amount, covering an equipment upgrade the partners had postponed for two years.
- Bridge facility to meet the buyout deadline
- SBA 7(a) loan on a ten-year term, retiring the bridge
- Equipment upgrade folded into the long-term financing
The outcome
The buyout closed on the agreed date. Patients and staff saw no change, and the practice's monthly debt service came in below the distribution it replaced.
“They ran two processes at once, so we never had to choose between speed and the right loan.”
Partner, dental practice