Innovative Equity Solutions for Associates & Executives
Charlotte, NC – Polaris Healthcare Partners announced today it is expanding its core service offering to include Equity Modelling for Associates and Executives of group practices. These innovative "earned equity" models are based on common solutions found in many publicly-traded companies and are intended to help solve the biggest problem facing group practice owners: attracting and retaining key associates.
"Almost every group practice owner has faced the same primary problem: how to attract and retain top talent - most notably associates," said Perrin DesPortes, one of Polaris's Co-Founders. "We know that if we can provide a solution to that challenge, our clients stand a far better chance of building and operating a successful business. We've always prided ourselves on creating innovative solutions to major problems, so we drew upon our collective experience in Corporate America to design a solution where a high-performing Associate could earn equity in a business without actually having to take on another loan and buy into it as they would in a traditional arrangement."
Company Co-Founder Diwakar Sinha went on to say: "We believe that people who have an ownership stake in a business operate with a higher level of detail and they tend to stay longer. We also know that young dentists are typically carrying a lot of student loan debt, so their desire to borrow more to buy or build their first practice is lower than ever before. We think our models that allow an associate to earn equity while helping the founder increase the value of his or her holdings is a true 'win-win' solution in today's marketplace."
The company's innovative models are based on Restricted Stock (Membership) Units or Profits Interest Units. The models reward Associates and/or Executives with shares in the business that are earned through superior performance and exceeding annual hurdles. The Founder(s) of the business are ultimately diluted in terms of ownership percentage, yet the value of their holdings increases at a rate in excess of the impact of the dilution. The Founder(s) ultimately end up owning the majority of a much more valuable pie.
Polaris Healthcare Partners' mission is to help dentists and other healthcare entrepreneurs build and sustain successful group practices. The company provides support through the discovery of needs, executive-level consulting, access to capital, equity partnerships, and M&A advisory services.
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