| Straight
from the owner's mouth...
As a 1999 graduate of the University of Pennsylvania, I wanted to purchase my
own orthodontic practice in 2002. After a lengthy search I found the perfect
practice to buy - a seasoned practice in a great suburban location with excellent
demographics. However, with no funds available for a down payment and a six-digit
balance on my student loans, my negative net worth made it difficult for me to
qualify for acquisition financing. I knew that I qualified with all of the specialty
finance companies but I did not want to pay a premium on rate. The transition
broker involved with the practice sale recommended that I call ColeTaylorBank.
ColeTaylor recognized the value in the 35-year
old practice that I wanted to purchase and
their cash flow approach to acquisition financing
helped confirm that I was paying a fair price.
ColeTaylor's analysis of the deal demonstrated
they understood the dynamics of a specialty
practice. ColeTaylor worked with the transition
broker in the transaction by suggesting a seller's
note in lieu of a down payment. This was a "win-win" situation
for all parties involved as the selling orthodontist
was able to earn a competitive rate on the
seller note and he was able to defer capital
gains on a small portion of the sale.
ColeTaylor took comfort in the practice's existing cash flow and the transition
plan. To help get me started, ColeTaylor provided me with two months of working
capital in addition to the acquisition funds. Recognizing that it would take
me a few months to get settled, ColeTaylor structured "interest only" payments
for the first 6 months of the acquisition note to assist with cash flow.
As an added bonus, ColeTaylorBank introduced
me to a few of their general dentistry clients
in the area to help me build a referral network.
Thanks to ColeTaylor, I have the opportunity
to grow my practice - I couldn't have done
it without them!
To
learn how ColeTaylor’s professional
practice expertise can make the critical
difference in the growth and prosperity
of your practice, please contact us by
calling 312-442-5130. Or Contact
a banker now for
more information.
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