MB2 Dental, the original Dental Partnership Organization, announced the closing of its 300th affiliated practice with Dr. Adrian Huang and Dr. Preston Huang, owners of Ninth East Dental and Canyon Road Dental in Provo, Utah. Additionally, MB2 entered its 30th new state, partnering with Dr. Joseph LaPonzina in Bel Air, Maryland.
“The work we have done building our practice together was very rewarding,” said Dr. Huang, “but the management responsibilities and time commitment it takes to run two practices became increasingly challenging. We wanted to find a partner that would shift some of the more routine management tasks off our plate, allowing us the freedom to work on our practices in ways that enhance our patient experience. MB2 was the only group we talked to that not only recognized the hard work we have put into building our current practice, but also encouraged us to be creative and innovative in our ideas. They have made it clear they want to serve as a support team for us to carry out our vision for our practices instead of forcing us to implement cookie-cutter systems they have already established. We have been doing things on our own for over ten years, and it’s a great feeling to be welcomed into a community of like-minded practitioners. We are excited to get to know all the awesome people and practice owners at MB2 and look forward to collaborating with them while we grow our practices.”
MB2 Dental, the first-ever Dental Partnership Organization (DPO), focuses on its dentists’ wellbeing and financial success. MB2 founded the DPO platform to help dentists succeed and capitalize on financial opportunities not available with any other dental group.
In January, MB2 Dental announced its partnership with Charlesbank Capital Partners, a middle-market private equity firm based in Boston and New York. A total of 300 people (dentists and employees) opted to invest a total of $255 million alongside Charlesbank.
The financial investment from Charlesbank will fuel MB2 Dental’s growth by providing additional liquidity and financial support, helping to add even more acquisition and de novo practices to their platform.
MB2 Dentist Owners were in a unique position to take advantage of recapitalization economics via the new Charlesbank partnership, monetizing a portion of their remaining equity at triple that of a traditional private practice valuation. Investing is just one of the many ways that MB2 Dentist Owners can maximize their long-term income potential. MB2 Dental offers dentists who partner with the company six potential streams of income:
- Regular income based on chairside production
- Monthly practice profit distributions, based on the doctor’s retained ownership
- Selling practice equity at valuations considerably greater than market values
- Investment of stock in the MB2 Holding Company
- Investment into recurring MB2 growth funds
- Lucrative referral bonuses
This is MB2 Dental’s second successful recapitalization with a private equity investor. In 2017, MB2 Dental partnered with Sentinel Capital Partners. During its partnership with Sentinel, MB2 grew from 85 affiliated practices to 275 and expanded its geographic footprint from six states to 24. The January 2021 deal with Charlesbank is MB2 Dental’s marks a new chapter in MB2’s continued evolution. From the proceeds of this recapitalization, 98 MB2 doctors received more than $1 million each.
“In our first recap with Sentinel, 37 doctor owners participated at the highest value,” says Dr. Chris Steven Villanueva, Founder and CEO of MB2 Dental, “This time with Charlesbank, 226 doctor partners participated and then had the opportunity to reinvest their capital back into the company for a future return that they would never receive as a private practitioner. An opportunity like this used to only be available reserved for large financial investors. This has never been done before by any other group in the dental profession.”
MB2 partner Dr. Gabriel Shahwan says, “Being a partner with MB2 Dental has given me the ability to invest directly into a growing organization that partners with successful dentists in their practices. Not only do you get to meet great dentists, but also each partner is financially aligned with one another- therefore, our successes are shared. Charlesbank saw the strength that our model has, invested in MB2 Dental, and kept the structure the same where dentists can continue to invest in each other.”
The list of partners grateful for this life-changing opportunity goes on. Dr. Dustin McBride, MB2 doctor partner, says, “To say that partnering with MB2 and getting to participate in all their investment opportunities was life-changing would be an understatement. I have basically had two careers, before and after MB2 partnership, and have experienced more income, less stress, and overall better quality of work-life since joining.”
About MB2 Dental
Dallas-based MB2 Dental is a first-of-its-kind dental partnership organization (DPO) founded and led by dentist and entrepreneur Dr. Chris Steven Villanueva. The Company empowers dentists to preserve their profession by ensuring clinical autonomy and providing resources and support to its doctor owners. Since its founding in 2007, MB2 has partnered with more than 700 general and specialty dental practices across 42 states.
