On today's part-2 episode, Mark continues his conversation with Brannon Moncrief, CEO of McLerran & Associates. They dive into the intricacies of dental practice sales, comparing the holdco equity model with joint venture models. Brannon sheds light on the varying financial outcomes these models can have for dentists, particularly those who have scaled back their clinical hours. They also discuss how a dental practice's value can surge during a recapitalization event and the factors influencing this increase. The discussion pivots to the inherent risks in the holdco model, such as the possibility of doctor turnover post-recap and the difficulties in predicting investment returns. Mark and Brannon explore the benefits of joint venture models, including the advantages of continuous EBITDA distributions and potentially higher returns at the time of recap. Lastly, they touch upon the emerging hybrid models that aim to blend the best aspects of holdco and joint venture structures to offer a balanced option for practice sellers.
For a more detailed exploration of these topics and to learn how these different business structures could impact your dental practice sale, tune into the full episode. Don't forget to follow the podcast for more valuable insights into the dental industry, and for personalized consulting services or strategic advice, reach out to Brannon Moncrief at McLerran & Associates.
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