- The firm generates $8.0 million of gross revenue, which is a meaningful scale for a buyer to underwrite.
- Revenue per partner is $2.0 million, indicating strong partner-level productivity based on the provided figures.
- EBOC is 50%, showing that half of gross revenue remains after operating costs before partner compensation and taxes.
- The firm has 30,000 billable hours, evidencing a substantial volume of service delivery activity.
- The partner group is concentrated at ages 53–54, which may support a relatively stable near-term ownership profile for transaction planning.
- EBOC is 50%, indicating a relatively modest earnings conversion that may limit valuation support versus higher-margin firms.
- The firm has only 4 partners generating $8,000,000 of revenue, so revenue is concentrated in a small leadership base and could pose key-person continuity risk.
- All four partners are age 53-54, which creates near-term succession and retention risk that buyers will discount into value.
- Billable volume of 30,000 hours against 20 staff suggests a relatively small operating platform, which can constrain scale and transferability for a buyer.
- Increase revenue concentration in higher-value advisory work, as consulting represents only 4% of revenue and tax and audit each represent 3%, indicating a very small non-compliance mix today.
- Improve operating leverage and scalability by expanding the 20-person staff base around four partners, supported by the current $2.0 million revenue per partner and 50% EBOC margin.
- Strengthen succession and continuity planning given the four partners are all in a narrow age band of 53–54, which may support a more orderly transition and protect valuation.
- Grow overall firm scale from the current $8.0 million gross revenue base to enhance marketability and reduce key-person concentration, particularly with only four partners driving the business.
- The firm’s revenue base appears highly concentrated in non-attest, non-tax work, with audit at 3% and tax at 3% of gross revenue, which may limit service-line diversification and make earnings more dependent on a narrow core offering.
- Partner succession risk is elevated because all four partners are clustered in a narrow age band of 53–54, suggesting limited near-term generational transition planning and potential continuity pressure over time.
- Staffing leverage may be tight for the scale of the practice, with 20 staff supporting 30,000 billable hours and four partners, which could constrain capacity, increase workload concentration, or limit scalability.
- Revenue per partner of $2.0 million is strong, but it also implies meaningful dependence on each partner’s production and client relationships, which can create key-person risk in a four-partner firm.
- EBOC margin of 50% is solid, but it leaves limited cushion if compensation, staffing, or overhead pressures increase, which could affect valuation durability.