When most buyers start looking for a dental practice, they naturally gravitate toward listings that appear:
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Busy
-
Profitable
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Fully optimized
-
“Turnkey”
And while those practices certainly have their place, they’re not the only—or even the best—opportunities in today’s market.
In fact:
Some of the best opportunities are hiding in practices that appear underperforming at first glance.
The key is knowing how to identify the difference between:
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A struggling practice
and
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An underutilized one
Why “Underperforming” Doesn’t Always Mean “Bad”
In today’s environment, many practices are not operating at full potential due to factors we’ve discussed throughout this series:
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Staffing constraints
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Inefficient systems
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Limited hours
-
Outdated workflows
Remember:
> About one-third of dentists report they are not busy enough
That doesn’t necessarily mean:
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Demand is weak
It often means:
The practice isn’t fully capturing the demand that exists.
Where Hidden Opportunity Comes From
Let’s look at some of the most common areas where buyers can create value.
1. Unused Capacity
This is one of the biggest opportunities.
Examples include:
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Open chair time
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Underutilized hygiene schedules
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Limited days or hours
In many cases, a practice may be producing:
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$700K–$900K
but could realistically support:
-
Significantly higher production
with relatively modest changes.
2. Staffing Gaps That Can Be Solved
Staffing is a challenge—but it’s not always permanent.
A practice that is currently:
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Short a hygienist
-
Operating below full capacity
may offer upside if:
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The buyer has a plan to recruit
-
The market supports hiring
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Compensation and structure are adjusted
3. Inefficient Systems
Many practices have:
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Scheduling inefficiencies
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Low case acceptance
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Limited tracking of key metrics
These are often areas where:
A new owner can create immediate impact.
4. Limited Marketing or New Patient Flow
Some practices rely heavily on:
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Existing patient bases
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Word-of-mouth referrals
While that can be stable, it may also limit growth.
Introducing:
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Basic marketing strategies
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Online presence improvements
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Patient acquisition systems
can significantly increase new patient flow.
5. Outdated Practice Models
Some practices have simply not evolved with the market.
Examples include:
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Limited service offerings
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Older technology
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Traditional scheduling models
For the right buyer, these represent:
Opportunities to modernize and expand.
The Key Question Buyers Need to Ask
When evaluating an “underperforming” practice, the most important question is:
Why is it underperforming?
Is it due to:
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Lack of demand?
or
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Lack of execution?
That distinction is critical.
Lack of Demand
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Fewer patients
-
Weak referral base
-
Challenging location
> Harder to fix
Lack of Execution
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Inefficiencies
-
Staffing gaps
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Limited hours
-
Poor systems
> Often fixable—and where opportunity exists
What Sellers Should Understand
For sellers, this perspective is important.
If your practice is:
-
Not fully optimized
-
Not operating at peak capacity
that doesn’t mean:
It lacks value.
In fact:
Opportunity is part of the value.
Buyers often recognize and are willing to pay for:
-
Untapped potential
-
Clear paths to growth
The key is:
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Framing that opportunity effectively
-
Supporting it with data and insight
The Risk (and How to Manage It)
Of course, not every underperforming practice is a hidden gem.
Buyers need to be careful not to:
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Overestimate their ability to fix issues
-
Underestimate structural challenges
-
Ignore market realities
This is where:
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Careful analysis
-
Realistic assumptions
-
Thoughtful planning
become essential.
The Bigger Insight
In today’s market:
Value is increasingly created after the purchase—not just before it.
That’s a shift.
And it means that:
-
Buyers who can execute have an advantage
-
Sellers who understand their practice’s potential can position it more effectively
Looking Ahead
Next week, we begin a deeper dive into one of the most important challenges in dentistry today:
> The dental hygienist shortage—and why it’s become such a critical issue.
If you’re evaluating opportunities and want help distinguishing between risk and real upside, that’s where experienced guidance can make a meaningful difference.