5 June 2022
Failure of WonderSmile
WonderSmile, which marketed itself as an alternative to Invisalign, has been advertised for sale as a going concern by its administrator Shumit Banerjee in the Australian Financial Review of 3 June 2022. Contact is Mr Ben Fletcher (02) 91137222 or ben.fletcher@westburnadvisory.com.au.
The business is advertised as having 13 locations in NSW, Vic, Qld, SA, ACT, and WA with an annual turnover of $4 million to $4.5 million. The business has operated with approximately 50 employees and internally developed software/technology.
Comment
Compared to even small dental-related practices, the average fee turnover per location and the number of employees does not go close to resembling a profitable sustainable dental/dental specialist group of practices. It is being offered as a going concern but I am doubtful that anyone can buy it and turn it into a profitable enterprise. This would require a substantial lift in fee income concentrated in fewer locations with less staff.
It may be that the trustee in administration is simply following a sequence to test the market and demonstrate that the business is unsaleable which may then end in liquidation.
It appears that WonderSmile’s owners overestimated the market for their product and expanded into too many locations with too little income to sustain it.
Best wishes to all dentists.
Graham Middleton
