Is it possible to use the SBA with an MSO/PC structure?

by a searcher from Gonzaga University

2 years ago

Currently pursuing a roll-up of the medical aesthetics space - specifically medical spas (e.g., botox, lasers, non-invasive fat removal).

Medical spas must comply with the CPOM (in states where applicable). This means a doc must own the medical practice. As such, we prefer to find targets where the seller/physician will stick around post-close. We'll be using an MSO/PC structure to satisfy the CPOM. The seller/physician would become the owner of the PC.

From what I understand, the SBA prohibits the seller from sticking around for longer than 12 months and having continued ownership in the acquired entity. For the savvy bankers and SBA experts out there, is there a way to use the SBA and have the seller/physician stick around in the MSO/PC structure post-close?

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8 comments

searcher from Florida State University

not sure

2 years ago | like reply | 0 likes

searcher from University of Pennsylvania - The Wharton School

Great question that I might be running into - would love to hear what's the final viable path here....

2 years ago | like reply | 0 likes

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