CASE STUDY

D

The Opportunity & The Vision

YEAR 1

The partnership begins with the dentist selling 60% of the practice to Rubicon. The practice is valued at $600,000. Rubicon pays the dentist $360,000 for an ownership share.

PRACTICE 1 : Yearly income: $312,000

  • Salary (average)/month: $20,000
  • Quarterly Profit Dividend: $18,000

$312,000 Total Income

YEAR 3

In year 3, the dentist buys a 10% interest in a second location, again partnering with Rubicon. The practice is valued at the exact same amount making an investment of $60,000. The practice generates the exact same revenue as the first practice in year 1. Currently practice 1 has grown 15% per year.

PRACTICE 1 : Yearly income: $405,600

  • Salary (average)/month: $26,000
  • Quarterly Profit Dividend: $23,400

PRACTICE 2 : Yearly income: $22,318

  • Quarterly Profit Dividend: $5,580

$427,918 Total Combined Income

YEAR 5

In year 5, the first practice has grown an additional 15%. The second practice has also grown 15% and the dentist found a third office (at the exact same price) to purchase a 20% share in. The investment is $120,000.

PRACTICE 1 : Yearly income: $527,280

  • Salary (average)/month: $33,800
  • Quarterly Profit Dividend: $30,420

PRACTICE 2 : Yearly income: $29,012

  • Quarterly Profit Dividend: $7,253

PRACTICE 3 : Yearly income: $44,636

  • Quarterly Profit Dividend: $11,159

$600,928 Total Combined Income