- The firm generates $8.0 million of gross revenue, which provides meaningful scale for a buyer to underwrite.
- Revenue per partner is $2.0 million, indicating substantial production concentration at the partner level.
- The firm reports 30,000 billable hours, showing a sizable volume of fee-earning capacity.
- EBOC is 50%, which indicates that half of gross revenue remains after operating expenses before partner compensation.
- The firm has 4 partners and 20 staff, giving a 24-person operating base that can support current workload.
- EBOC is 50%, which leaves only half of gross revenue available to cover partner compensation, overhead, and growth investment, limiting valuation support.
- Revenue per partner is only $2.0 million across 4 partners, indicating modest scale at the owner level and a relatively fragmented earnings base for a buyer.
- The firm has 4 partners and 20 staff, so the business appears partner-heavy relative to its workforce, which can increase key-person dependency and transition risk.
- Increase revenue per partner by expanding the current $8.0M revenue base across the four-partner platform, which would improve scale and valuation leverage.
- Improve operating efficiency and margin above the current 50% EBOC level, creating direct upside to earnings quality and valuation.
- Increase billable hours from the current 30,000 level through better staff utilization and capacity deployment across 20 staff, supporting organic growth without adding partners.
- Preserve and deepen the existing partner-led model while planning for succession, since all four partners are the same age and the firm’s value is concentrated in a small ownership group.
- Use the current 20-staff support base to take on additional volume and improve leverage, which could enhance profitability if managed without diluting margin.
- The firm’s EBOC margin of 50% is solid, but it still leaves meaningful exposure to earnings compression if compensation, overhead, or staffing costs rise faster than revenue.
- Revenue of $8.0 million supported by only 4 partners implies $2.0 million of revenue per partner, creating key-person dependency and succession risk if any partner reduces involvement.
- Partner ages are all listed as 20, which provides no evidence of near-term retirement risk but does indicate the age data is not informative for assessing succession readiness, adding diligence uncertainty.
- With 30,000 billable hours across 20 staff, the practice appears operationally dependent on a relatively small team, so turnover or capacity disruption at the staff level could affect delivery and utilization.
- The absence of practice detail in the provided data limits visibility into service-line mix and operating risk, which can widen valuation uncertainty for a buyer.