Close · Dental Practice Management

Dental Practice Management Deals: Representations & Warranties Drafting Done Right

Independent sponsor counsel for dental practice management, focused on Representations & Warranties Drafting and the deal mechanics that protect sponsor economics and LP alignment.

EV range $10M to $130M EV EBITDA $2.5M to $22M Audience Buy-side / Sponsor
The deal context

The economics on a dental practice management platform deal usually hinge on a handful of structural decisions. Representations & Warranties Drafting is one of them.

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.

The moves

How Representations & Warranties Drafting actually gets structured.

  1. Anchor on a modern PE-style rep package, not an asset-purchase boilerplate.

  2. Distinguish fundamental reps from general reps in survival and cap structures.

  3. Negotiate knowledge qualifiers to defined-person knowledge, not constructive knowledge.

  4. Coordinate the rep package with the R&W insurance carrier's underwriting.

  5. In dental practice management, layer in MSO model documented per state as part of the Representations & Warranties Drafting workstream.

The common mistake

Drafting reps without reading the disclosure schedules. The schedules are where the risk actually lives.

Jason's take
"Reps and warranties are a risk allocation. Draft them like risk allocation."
Jason Powell · Representations & Warranties Drafting
Capital after close

The deal is one thing. The capital that opens up after close is another.

Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a dental practice management target, and a Representations & Warranties Drafting 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.