- The firm generates $8.0 million of gross revenue, which is a meaningful scale for a buyer evaluating transaction size.
- EBOC is 50%, indicating that half of gross revenue remains after owner compensation and is available to support enterprise value.
- The firm produces 30,000 billable hours, showing a substantial volume of service delivery activity.
- With 4 partners and 20 staff, the firm has a defined operating structure that supports the current revenue base.
- Revenue per partner is $2.0 million, which is a material productivity metric from a buyer’s valuation perspective.
- EBOC is only 50%, indicating relatively modest profitability for an $8.0 million practice and limiting valuation support.
- All four partners are age 54, creating a clear succession and transition risk that a buyer would need to underwrite.
- Revenue per partner is $2.0 million across only 4 partners, suggesting the firm is heavily dependent on a small partner group for production and client retention.
- The firm generates $8.0 million of revenue with 20 staff, which implies a relatively limited operating platform and may constrain scalability without additional hiring or infrastructure buildout.
- Strengthen succession and continuity planning, as all four partners are age 54, to reduce key-person risk and support valuation stability.
- Increase leverage by expanding staff capacity relative to four partners and 20 staff, which could improve partner scalability and future revenue growth.
- Improve realization and pricing discipline to build on the current 50% EBOC margin and potentially expand earnings quality.
- Grow billable volume above the current 30,000 billable hours to raise revenue from the existing operating base and improve scale.
- Increase revenue per partner beyond the current $2.0 million by deepening partner productivity and/or expanding the firm’s operating footprint.
- All four partners are age 54, creating a near-simultaneous succession and transition risk that could affect continuity and buyer confidence.
- The firm’s staffing base is relatively lean at 20 staff supporting $8.0M of revenue, which may indicate key-person dependency and limited operating depth.
- Revenue per partner is $2.0M across four partners, so a buyer may view the business as highly partner-driven and sensitive to any partner departure or reduced production.
- Billable hours of 30,000 against $8.0M of gross revenue suggest meaningful utilization dependence, leaving less room for productivity slippage without pressure on earnings.
- EBOC margin of 50% is solid, but it also means valuation is exposed to any normalization of partner compensation or overhead if current profitability is not fully transferable.