Pacific Smiles impressed us as an IPO

Pacific Smiles operates branded dental care centres in Australia. Pacific Smiles provides Dentists a range of services including facilities, support staff, marketing, materials and administrative services. The business model allows dentists to maximise their time treating patients, i.e. generating revenue, without the distractions of operating the business of the dental clinic. Pacific Smiles uses demographics to identify locations that are suitable for opening new sites. PSQ also implements a “clustering: strategy whereby they cluster a number of dental centres within a given local area. The benefits of the clustering model include enhanced capacity utilisation management, sharing of staff and flexible opportunities for dentists to build their practices, brand awareness and marketing efficiencies and cross referrals between practices and dentists. We see a big organic rollout ahead for their dental centres. We see dental services as ripe for corporatisation via the Pacific Smiles model. Corporatised dental business have scale procurement, marketing, compliance training and utilization advantages over stand-alone dental practices.