- The firm generates $25.0 million in gross revenue, which is material from a buyer’s valuation perspective.
- Consulting represents 50% of revenue, indicating a substantial advisory component in the revenue mix.
- EBOC is 50%, providing a clear profitability metric for valuation analysis.
- The firm has 2 partners and 20 staff, showing a defined operating platform with a 10:1 staff-to-partner ratio.
- Revenue per partner is $12.5 million, reflecting a high revenue concentration per equity owner.
- Audit and tax each contribute 25% of revenue, giving the firm a balanced compliance revenue base alongside consulting.
- With only 2 partners supporting $25,000,000 of revenue, the firm shows high partner dependency and limited management depth, which can increase succession and key-person risk in a transaction.
- The practice has no clear accounting service concentration, with Consulting at 50% and Audit and Tax each at only 25%, which may make earnings less resilient if the consulting work base changes.
- At 3,600 total billable hours against $25,000,000 of revenue, the firm’s scale appears constrained relative to output, leaving limited operating capacity visible from the provided data.
- Increase the share of higher-value consulting work, as consulting already represents 50% of revenue and can support stronger growth and valuation if expanded profitably.
- Deepen the specialized niche offering, since the firm already reports a specialized niche and further concentration can improve differentiation and pricing power.
- Improve leverage by adding staff or expanding billable capacity, given only 20 staff and 3,600 billable hours across a $25 million revenue base, which suggests room to scale delivery.
- Optimize the audit and tax mix, with each currently at 25% of revenue, to balance recurring compliance work with higher-margin advisory services.
- Build partner succession depth, as the firm has only two partners aged 28 and 35, which creates key-person concentration and limits scalability without broader leadership bench strength.
- Revenue is concentrated in consulting, which represents 50% of gross revenue, creating earnings sensitivity to changes in that service line’s demand or delivery capacity.
- The firm has only 2 partners and 20 staff, so the business appears operationally dependent on a small leadership team and limited bench depth relative to $25,000,000 of gross revenue.
- Revenue per partner is $12,500,000, which is high for a two-partner firm and may indicate key-person dependence and succession risk if either partner reduces involvement.
- The practice shows only one specified niche (“Test”), suggesting a narrow service profile that may limit diversification across offerings and make the revenue base less resilient.
- EBOC is 50%, leaving half of revenue before operating profit, which can constrain valuation if margins compress or if additional investment is needed to support growth.