The situation
Drs. Karen and Tom Whitaker had a full schedule and a waitlist. A space opened up in a new medical building across town, but they had two weeks to tell the landlord and no idea whether a second office would pay for itself.
Their practice was also still taxed as a sole proprietorship, years after it made sense to change.
What we did
We worked as their part-time CFO through the decision.
- Built a 36-month model for the new office: build-out, equipment, staffing and a realistic ramp-up of patients.
- Prepared the lender package, including projections and two years of clean financial statements.
- Set up a holding structure and an S-corp election with a reasonable salary for each dentist.
- Set a monthly review of production, collections and overhead for both offices.
The results
The bank approved the loan in three weeks. The second office broke even in month 13, one month ahead of the model, and the S-corp election cut the practice’s self-employment tax by about $18,600 a year.
“We knew dentistry, not lending. Quantro gave us numbers we trusted and the bank trusted. That made the decision easy.”
