Dental Practice Management Deals: Post-Close Cap Table Design Done Right
Independent sponsor counsel for dental practice management, focused on Post-Close Cap Table Design and the deal mechanics that protect sponsor economics and LP alignment.
Post-Close Cap Table Design on dental practice management deals is one of those workstreams that looks routine on a checklist and decides outcomes in practice.
The typical dental practice management platform sits at $10M to $130M EV with EBITDA in the $2.5M to $22M range. The thesis runs on DSO buy-up under an MSO. Insurance mix dictates valuation. Read the PPO contracts before the EBITDA.
How Post-Close Cap Table Design actually gets structured.
Reserve a 10 to 15 percent management incentive pool, vesting on time and performance.
Document profits interests in the LLC operating agreement with a clear strike value.
Build anti-dilution mechanics for the rolled-equity sellers, narrowly.
Plan for add-on equity issuances with pre-approved dilution mechanics.
In dental practice management, layer in MSO model documented per state as part of the Post-Close Cap Table Design workstream.
Designing the cap table for day one only. The cap table you sign at close is the cap table you live with through year five.
"Cap tables are forecasts. Build them for the deal you want in year five, not the deal you signed in week one."Jason Powell · Post-Close Cap Table Design
The deal is one thing. The capital that opens up after close is another.
After close, the call list for refinancing, recapitalization, and growth equity gets short and known. Jason carries that list.
Related deal pages.
Transaction Fee Structuring for Dental Practice Management
The fee paid at closing to the independent sponsor for sourcing, structuring, and closing the platform deal a…
Working Capital Adjustments for Dental Practice Management
The closing-date true-up that protects the buyer from receiving a business stripped of normal-course working …
Representation & Warranty Insurance for Dental Practice Management
A buyer-side insurance product covering breach of seller representations, reducing seller escrow and indemnit…
Indemnification for Dental Practice Management
The seller's contractual promise to compensate the buyer for breaches of representations, covenants, and spec…
Post-Close Cap Table Design for Healthcare Services
roll-up of physician practices and ancillary service lines
Post-Close Cap Table Design for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
An LOI on the desk, a dental practice management target, and a Post-Close Cap Table Design question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.