Many practice owners have preconceptions about partnering with a corporation, believing that factors such as loss of autonomy, lack of stability and other liabilities outweigh the advantages. However, there are in fact many benefits of partnering with a corporation that many practice owners do not realize. This article will touch upon some of those points on how partnering with a corporation can help grow your business.
Access to capital and resources
The most common reason that practice owners partner with a corporation is the access to additional capital. Partners are able to bring in an infusion of capital into the business and help with overall operations of the business. In addition, by utilizing their extensive resources, it will help you attract more investors and enhance your ability to borrow additional capital to finance the growth of your business. Overall, this will result in an increase in financial security and cash flow, which will also drastically lower the stress of funding your own business.
Expertise and knowledge
Partnering with a corporation means getting access to a variety of expertise and specialized knowledge. Many practice owners believe that they already have all the necessary tools and resources necessary for running a successful business, and thus do not need any external help. This is a common misconception that many practice owners have. By partnering with a corporation, you can not only utilize their extensive resources, but also gain a new perspective. With their combined expertise in marketing, sales, and product design, partners are able to help business owners treat patients more effectively and have a competitive advantage against other businesses in the area.
Businesses are taxed as pass through entities. By partnering with another entity, business owners can share their tax liabilities with their partners and pay for their share of the ownership. This can substantially lower the cost of running the business and reduce the burden of paying all the corporate taxes by yourself.
More business opportunities
With strategic partnerships, it is possible to create more positive relationships, which can open up new business opportunities. By utilizing the corporation’s resources, including their marketing and communication teams, business owners can enhance their practice’s visibility and attract new patients to their practice. This results in expansions of geographic reach and product lines, which will allow your practice to gain new customers and increase revenue. As patients will see that you are working with a trusted partner, it will give them the reassurance that they are in good hands, building your credibility.
Another common reason that practice owners search for a partner is because they are looking to steadily step back from the business. By partnering with a corporation, business owners are able to share their responsibilities with other partners, giving them the time and freedom to have a work-life balance without fully giving up ownership of their business. In addition, when the business owner does decide to sell their business, the partners will fully acquire their practice and continue to enable growth to serve your patients with the legacy you have built around it.
About Dwek Capital
Dwek Capital is a private equity and advisory firm that specializes in the healthcare sector: dentistry, dermatology, optometry, physiotherapy, and veterinary. We work with leading healthcare groups across North America to provide them with the best opportunities out there. If you are a practice owner that is looking to sell your practice and would like to learn more about some of the opportunities currently available, please contact us at firstname.lastname@example.org and our partners or associates would be happy to give you a free consultation.