FDIC-Insured – Backed by the full faith and credit of the U.S. Government
Dr. D had spent years caring for patients and building trust as an associate at a thriving dental practice. When the chance came to purchase the practice and the building it occupied, it was exactly the type of transition that should have been straightforward. She knew the patient base, understood the operations, and had a clear vision for the future.
The numbers were compelling: a $3.37M practice acquisition combined with a $1.27M commercial real estate purchase. The building also included two additional tenants, creating diversified rental income and reducing overall risk.
Traditional banks, however, focused solely on the total transaction size. The combined $4.64M triggered strict liquidity requirements that ignored the context. Lenders didn’t account for Dr. D’s years inside the practice, her established patient relationships, the building’s stable rental income, or her strong personal financial position. Instead, they applied rigid formulas that pushed the deal out of reach unless she could provide significantly more cash.
Where Traditional Banks Fall Short
Despite the deal’s strong fundamentals, traditional underwriting models couldn’t see beyond their predefined criteria. The opportunity made sense, but it didn’t fit neatly into a standardized checklist, putting the entire acquisition at risk.
The Panacea Difference: Common-Sense Underwriting
Dr. D’s attorney, who also acted as her buyer’s representative, understood that healthcare lenders vary widely in their approach. Knowing Panacea’s reputation for flexible, context- driven underwriting, they brought the deal to us.
Our team evaluated the full picture rather than just the loan size. Dr. D wasn’t an outside buyer; she was already deeply integrated into the practice, which reduced transition risk. The practice itself had healthy cash flows with a 1.9x DSC, consistent performance, and a loyal patient base she helped build, all with a reasonable purchase price of 80% of gross annual revenue. The real estate component offered multiple income streams and long- term stability, not added risk. And importantly, this was a chance to form a long-term relationship that supported both her practice and real estate operations.
The Structure: Flexibility That Fits
With that context, we structured financing that made sense for Dr. D’s situation. Instead of focusing on strict liquidity formulas, we looked at her actual ability to service the debt, supported by existing practice cash flow and rental income. We aligned terms with the practice’s financial rhythm and moved quickly to help her secure the opportunity before another buyer stepped in.
The Outcome: A Complete Banking Relationship
Dr. D successfully acquired both the practice and the building, positioning herself for long-
term stability and diversified income. And the partnership extended well beyond the loan
itself. Her practice’s business banking—operating accounts, merchant services, and daily
financial needs—transitioned to Panacea. The real estate entity managing the building also moved its banking relationship to us.
Instead of being just another file at a large institution, Dr. D gained a financial partner who understands healthcare practices and can support her through future growth
