Dental practices across Australia are operating in an increasingly competitive and commercially complex environment. While many dentists focus primarily on clinical outcomes, long-term practice value also depends on operational performance, profitability, and business resilience.

An analysis of 135 completed Risk and Value Driver Assessments (RAVDAs) identified seven key concerns affecting practice performance, sustainability, and valuation outcomes. The data also revealed a significant education gap surrounding the non-financial drivers of enterprise value.

This white paper examines the major issues impacting dental practices and outlines strategic priorities to help owners improve operational performance, reduce risk, and maximise long-term practice value.

The most significant concern identified is reliance on the principal dentist. 41% of practices reported High or Very High owner reliance, while only 14% believed the practice would operate effectively without the principal dentist.

43% of practices reported feeling threatened by corporate or health fund-operated dental groups. The increasing corporatisation of dentistry is reshaping the competitive landscape.

While many dentists remain neutral or positive regarding private health insurance arrangements, 30% reported a negative impact from these agreements. 

Only 52% of practices reported generating new patient visits through targeted advertising and online search strategies, while 15% had no advertising plan at all.

Only 21% of practices regularly benchmarked their performance against industry peers. Without objective comparisons, practice owners may struggle to identify performance gaps, recognise emerging risks, or understand how their results compare to top-performing practices

While many practice owners focus on increasing patient numbers and revenue, profitability ultimately determines how much value the practice creates. 33% of dentists were not tracking EBIT as a percentage of Gross Patient Fees (GPF), while only 13% achieved EBIT above 25% of GPF.

Practice principals remain focused on increasing Gross Patient Fees (GPF), yet 59% of practices reported annual growth of less than 10%. Sustainable growth in patient numbers, treatment acceptance, and average patient spend remains essential to long-term success.

One of the strongest themes emerging from the data is the non-financial KPI education gap within the dental sector. Many dentists understand traditional financial measures but have limited awareness of the operational drivers that influence practice value.

The data shows a meaningful performance gap between industry average practices and top-performing dental businesses. The evidence suggests that many practices can materially improve value through operational improvements alone.

Many dental practices have significant untapped value. With only 21% benchmarking performance, 33% not tracking profitability, and 41% reporting high principal dentist reliance, there is substantial opportunity to improve practice value before exit.

By adopting the strategies of top-performing practices, owners can strengthen profitability, reduce risk, and achieve better succession and sale outcomes.

The evidence is clear: addressing these seven concerns is critical for SMEs aiming to protect and grow business value. Owners and advisers who act on these insights can improve resilience, increase valuation multiples, and secure better succession outcomes.

We help SME owners and their advisers identify, prioritise, and implement strategies that address these structural risks.

To arrange a confidential discussion or request your Industry Top Performers Report, contact us at 03 5259 9970 to speak with Mark Hall our head of advisory.

Or, if you want to take look at the big picture, head over to the latest white paper article on Australia’s Biggest Business Concerns Impacting SME Value.