Introduction
Healthcare acquisitions are highly attractive but often come with valuation, regulatory, and transition risks. Yaw Capital structured SBA financing for a first-time dental buyer to acquire a $2.5M clinic from a retiring doctor.
The Challenge
The buyer faced hurdles:
- High goodwill compared to assets.
- Limited personal liquidity.
- Patient retention concerns during transition.
Our Solution
Yaw Capital matched the buyer with a healthcare-focused SBA lender and structured:
- 10% down payment, with seller financing covering part of the injection.
- 10-year term with built-in working capital.
- Transition agreement ensuring seller remained for 6 months.
The Outcome
The deal closed in 75 days. The buyer retained 95% of patients, maintained strong revenue, and positioned the practice for growth.
Key Takeaways
- SBA lenders comfortable with goodwill-heavy healthcare deals.
- Seller notes reduce buyer equity requirements.
- Transition agreements support patient retention.
