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Bio | Dr. Chris Villanueva is a co-owner of MB2 Dental Solutions. He talks about the benefit of joining a dental co-op for growth and investment gains. |
NOTES
Sharing the management expenses between offices gives you a better financial advantage
Doctor participation and ownership is the model; the owner makes the decisions for their office
Recapitalization gives the opportunity, but it is not required, to restructure your value
You can sell a portion of your equity off, during a recap, at a higher value than you bought in
Private practice owners cannot achieve nearly as much success as they would within a co-op, but your risk is lowered
Another big difference is that by having doctors as partners, there is practice growth and you don’t run the risk of being kicked out by the corporate owner to increase your profitability
MB2 has an average of $1.7M per year in collections per location, so they only accept partners that are successful in their own right to make themselves better together
With MB2, your tax structure can improve, you can have growth in your practice, as well as the sidecar value, and gain better returns than most investments
Generally, recapitalization happens every 3-6 years, the growth in the number of practices over initial predictions sets this expected date to be much sooner
LINKS
Website: https://mb2dental.com/