MB2 Dental, the Dallas-based dental partnership organization, has raised a record $20 million for its ninth internal investment “sidecar” vehicle, allowing its doctor partners to invest in the company’s growth. Additionally, the organization closed an amendment to its existing debt facility, securing a new delayed-draw term loan of $150 million, MB2 announced.
MB2 plans to use the recently raised funds to expand its network of over 550 practices across 38 states and support upcoming acquisitions, the company said.
In a time when corporate boardrooms often drive decisions in healthcare, MB2 says it takes a different approach. The dental partnership organization founded by Dr. Chris Steven Villanueva prioritizes partnership and the role of dentists in making decisions for their patients.
Dr. Villanueva expressed gratitude for the support of its lenders, including middle-market private investment firm Charlesbank, in ensuring ongoing growth in a challenging environment.
“A leap of faith”
In a company video, Dr. Villanueva recalls the early days of MB2 Dental, when banks were hesitant to lend money, and he took a leap of faith to build the company from the ground up. The unique model of MB2 Dental is comprised of doctor partners as shareholders, enabling clinicians to “run the show.” According to Dr. Villanueva, this approach helps the company to compete with large corporations while retaining its identity.
“Scrappiness still permeates the culture today,” he said in the video.
“Sidecar” investments
In a statement, Dr. Villanueva expressed excitement about MB2 Dental’s doctor partners participating in the organization’s record investment returns, highlighting the company’s commitment to prioritizing its partners’ success and financial wellbeing.
MB2 said that since the inception of “sidecar” investments, MB2 doctor partners have invested over $75 million to help fuel its growth. That equity offering allows doctor partners to invest alongside MB2, which it said is a long-standing opportunity made exclusively to this group as part of MB2’s unique doctor-centric model.
“We’ve come a long way”
From what it calls “humble beginnings in Texas” in 2007, MB2 has grown its dental partnership organization model nationwide. “We’ve come a long way since one private practice and a vision to make dentistry better for doctors,” the company said on LinkedIn.
Since Villanueva founded the “first-of-its-kind” dental partnership organization—literally coining the phrase—MB2 has partnered with hundreds of dentists. The goal, according to the company, is to help dentists “stay in the driver’s seat as they maximize their talents, connect as part of a community, and build exceptional wealth.”
MB2 says it’s “much more” than a traditional dental support organization, or DSO. MB2, which says it coined the phrase “dental partnership organization,” wants to underscore its difference. The group aims to provide its partners with the necessary tools to achieve their goals and reach financial freedom, personal autonomy, and continued prosperity—without working overtime.
The organization offers support in areas such as human resources and recruiting, accounting and finance services, procurement, marketing, and development, among others. MB2 aims to do good for the profession and influence the future of patient care in dentistry.
Growth track
In 2022, MB2 Dental was No. 2327 on the annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. It was the fourth time MB2 has made the list.
MB2 Dental also ranked No. 95 in Dallas, No. 222 in Texas, and No.138 in health services.
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