Strategy – Structure – Scale

Financial Engineering. The Foundation for Tailored Capital Solutions

The dental market is shaped by digitalisation, the growth of practice networks, and the challenges of succession planning. In this environment, bespoke financing structures are becoming increasingly important. Practice groups, dental (software) start-ups and medical technology companies require flexible solutions to successfully execute expansions, digital business models or investments in new technologies.

Standard financing often falls short. What truly matters is tailored financial engineering that intelligently combines alternative sources of capital. In this way, growth strategies, acquisitions, investor searches or succession solutions can be secured. The aim is to ensure access to long-term growth capital, prevent operational bottlenecks and enable transformation.

In medium-sized businesses and start-ups, financing structures are usually historically developed and not adapted to changing conditions. New business units with initial losses, restructuring or investments in AI, automation and digital workflows demand significant resources before generating returns. Dental companies, in particular, are currently investing heavily in CAD/CAM, AI-based diagnostics and digital patient platforms.

Traditional bank financing frequently reaches its limits, making it necessary to involve alternative capital providers. This opens up opportunities but requires precise alignment – and above all, thorough preparation! Financial engineering here draws on several building blocks: 

• Debt capital: private debt, specialised financing, factoring, trade financing, insurance products

• Equity capital: private equity, provided that investors fit the sector, purpose and corporate stage

Private debt means flexible financing beyond traditional collateral. Private equity provides equity capital in exchange for minority or majority stakes and often contributes additional know-how and networks to the company’s development.

Both instruments offer SMEs valuable opportunities to achieve growth, transformation or succession outside traditional bank financing. In the dental industry, they can make the decisive difference in practice acquisitions, dental centre expansions or start-up development.

Every financing approach begins with strategy. The starting point is a sound business plan derived from corporate strategy, complemented by cash flow planning, scenarios for debt service capacity, and relevant valuation models. This creates a solid foundation for discussions with investors.

Conclusion: Financial engineering is a central complement to operational issues and forms the basis for your strategic decisions. For dental companies, this means succession plans can be structured, networks can secure their expansion, and start-ups can improve their financing prospects. Your house bank remains important – but it is only one partner among many.

We would be delighted to support you in developing the right financing architecture – Strategy – Structure – Scale.