- The firm generates $8.0 million of gross revenue, which is a meaningful scale for a buyer evaluating acquisition size.
- Revenue is concentrated in core accounting services, with audit and tax each representing 70% of revenue, indicating a substantial recurring compliance base.
- Consulting also represents 70% of revenue, showing a significant advisory component alongside compliance work.
- The firm produces 30,000 billable hours, providing clear evidence of operating volume and utilization capacity.
- With 4 partners and 20 staff, the firm has a defined operating structure that supports the reported revenue base.
- Revenue per partner is $2.0 million, which is a material productivity metric from a buyer’s perspective.
- EBOC of 50% leaves only moderate operating profit margin after compensation, limiting valuation support versus higher-margin firms.
- Revenue is concentrated in audit and tax, with each at 70% of revenue, indicating a narrow service mix that can pressure valuation.
- The firm has only 20 staff and 4 partners, which suggests limited scale and may constrain growth, depth, and buyer integration benefits.
- Revenue per partner of $2,000,000 points to meaningful key-person reliance at the partner level, which can increase transition risk for a buyer.
- Increase revenue per partner from the current $2.0 million level by expanding capacity and/or improving partner leverage, given only 4 partners support $8.0 million of gross revenue.
- Improve operating profitability by lifting the current 50% EBOC margin through better pricing, staffing mix, or delivery efficiency, as indicated by the existing margin profile.
- Monetize the strong consulting mix, with consulting revenue at 70%, by deepening higher-value advisory work that can support better margins and valuation.
- Use the balanced audit and tax revenue base, each at 70%, to cross-sell more integrated client services and increase wallet share across the existing client base.
- Build succession and continuity value early, as all four partners are the same age, by developing next-generation leadership and reducing key-person concentration risk.
- Revenue is highly concentrated in audit, consulting, and tax work at 70% each, which suggests limited diversification across service lines and greater sensitivity to any slowdown in core offerings.
- The firm has only 4 partners and 20 staff, so operating capacity and succession depth appear limited relative to $8.0M of gross revenue and 30,000 billable hours.
- Partner ages are all listed as 20, which may indicate an unusually young partner group and potential execution or retention risk if the data reflects the current ownership profile.
- Revenue per partner of $2.0M is relatively high for a 4-partner firm, which can indicate key-person dependence and pressure on partner bandwidth.
- EBOC at 50% leaves a meaningful but not excessive margin cushion, so profitability could be pressured if staffing or utilization weakens.