A few weeks ago, my partner, Kevin Arnold, wrote a blog post about “The Reasons DSOs Hit a Debt-Funding Wall” that created a lot of reaction. The subject matter is obviously a hot button for a lot of growing group dental practices and emerging DSOs these days, so we decided to revisit the topic and have a bank weigh in on the topic directly.
Imagine that – asking a real, live banker to share some “inside baseball” on the nuts and bolts of lending in the group practice space!
Here’s what the boys in dark gray suits and floral ties had to say…
As the dental industry continues to boom, many group practices are reaching key points of growth in their business. Securing financing is a crucial step to scaling your practice and reaching your acquisition goals, but the process can be daunting. However, it doesn’t have to be.
Banks, whether they specialize in dentistry or not, all evaluate the same credit criteria when determining their risk appetite for lending: basic credit, practice ownership characteristics, and the group’s overall value proposition.