The Innovative CPA Firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$25M
Annual Gross Revenue
17%
EBITDA Margin
$34M - $42.5M
Valuation Range
85%
Economic Profit%
3
No. of Equity Partners
$179/hr
Avg Client Rate ($/hr)
95
Total Employees
80%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • Tax services dominate the revenue mix at 75%, providing a clear core practice that drives the majority of firm revenue.
  • The firm generates $25.0 million of gross revenue across 140,000 billable hours, indicating a meaningful operating scale for a three-partner practice.
  • Revenue per partner is approximately $8.3 million, which is a material productivity metric from a buyer’s valuation perspective.
  • The practice includes defined specialty areas in real estate, high-net-worth, trusts and estates, and nonprofit work, showing multiple stated niche service lines.
  • The firm also has audit and consulting components, contributing 15% and 10% of revenue respectively and adding some diversification beyond tax.
Weaknesses
  • EBOC at 20% indicates a relatively thin earnings margin, limiting valuation support versus higher-margin firms.
  • Revenue is concentrated in tax at 75%, with audit at 15% and consulting at 10%, creating service-line mix concentration risk for a buyer.
  • The firm has only 3 partners supporting $25,000,000 of revenue, which creates meaningful key-person and succession risk around a very small ownership base.
  • Revenue per partner of $8,333,333 is high relative to the small partner group, suggesting the platform is heavily dependent on a few individuals.
  • Audit represents only 15% of revenue, which limits recurring attest diversification and may reduce cross-sell and balance across service lines.
Opportunities
  • Increase non-tax service lines, since tax represents 75% of revenue while audit and consulting together account for only 25%, creating room to diversify the mix and reduce concentration risk.
  • Expand higher-value advisory work within the existing niche base of real estate, high-net-worth, trust and estate, and nonprofit clients, as the firm already has specialized niches that can support cross-sell and deeper wallet share.
  • Improve partner leverage and succession readiness, as three partners support 95 staff and the partner group is relatively concentrated, which can enhance scalability and reduce key-person risk over time.
  • Build on the firm’s $25 million revenue base and $8.3 million revenue per partner to strengthen operating scale and valuation through continued growth without proportionate partner expansion.
  • Increase audit and consulting penetration where appropriate, since both are materially smaller than tax and could provide a more balanced revenue mix if the firm can convert existing client relationships into additional services.
Threats
  • Tax work represents 75% of gross revenue, so the firm appears heavily dependent on one service line and may face earnings pressure if that demand softens.
  • The practice mix is concentrated in a few specialized niches, including real estate, high-net-worth, trust and estate, and not-for-profit, which can make future growth more dependent on those segments than on a broad client base.
  • With only 3 partners supporting 95 staff, the firm may face key-person and management continuity risk if partner capacity becomes stretched or one partner departs.
  • Partner age is listed as 49, which suggests the current ownership group may have a limited runway before succession planning becomes a valuation issue.
  • Audit and consulting together account for only 25% of revenue, limiting diversification and leaving the firm more exposed to changes in tax-related demand.
Enhance Profitability

Increasing EBITDA margin to 25-30% could increase firm value by 25-40%.

17% EBITDA margin
Operational Efficiency

You are doing a great job on leverage, continue to look for opportunities to push work down to the appropriate levels, and remember that leverage is your biggest pathway to high levels of profitability

Leverage ratio 31.67:1
Revenue Acceleration

Without a defined growth rate, growth may be accelerated by adding advisory services, pursuing tuck-in mergers, or onboarding a lateral partner with an existing book of business.

+15–25% revenue growth
Risk Mitigation

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

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This preliminary valuation range is for discussion purposes only, based on unverified information, and is highly sensitive to assumptions. It does not constitute a formal valuation or transaction guidance and should not be relied upon by any party for decision-making purposes.