- $8.0M of gross revenue provides meaningful scale for a buyer evaluating the platform.
- Revenue is diversified across audit (40%), tax (40%), and consulting (20%), reducing reliance on a single service line.
- EBOC of 50% indicates that half of gross revenue remains after direct costs, which is a material valuation support metric.
- The firm generates 30,000 billable hours, showing a substantial operating base that supports current revenue levels.
- With 4 partners and 20 staff, the firm has a defined operating structure that can support the existing revenue base.
- Revenue per partner of $2.0M indicates a high level of partner productivity relative to the current partner group.
- EBOC of 50% indicates only moderate profitability, which can compress valuation versus higher-margin firms.
- The practice is relatively small at $8.0 million of gross revenue with only 4 partners, limiting scale and potentially reducing buyer flexibility.
- Revenue is concentrated in two core service lines, with audit at 40% and tax at 40% of gross revenue, leaving only 20% from consulting.
- The firm has a lean staffing base of 20 staff against 30,000 total billable hours, which can heighten key-person and capacity risk if attrition occurs.
- All partners are age 55, creating a concentrated succession risk that buyers may discount if transition timing is unclear.
- Increase the share of higher-value consulting work, as consulting currently represents only 20% of revenue versus 40% audit and 40% tax, creating room to improve mix and valuation quality.
- Expand leverage by adding staff or improving delegation, since 4 partners supported by 20 staff and 30,000 billable hours suggests partner capacity is a key constraint on scaling revenue.
- Improve profitability through pricing and utilization discipline, given EBOC is 50% on $8.0 million of gross revenue, indicating meaningful upside from margin expansion.
- Plan for succession and continuity around partner transition, as all 4 partners are age 55 and the firm’s value may be enhanced by reducing key-person dependence.
- Grow revenue per partner from the current $2.0 million level by increasing throughput and service mix, which would improve scale and support a stronger valuation.
- At $8.0 million of gross revenue with only 4 partners, the firm’s $2.0 million revenue per partner suggests meaningful key-person dependency and potential transition risk if any partner reduces involvement or exits.
- The partner age disclosure of 55 indicates a mid-to-late career partner group, which can create succession and continuity risk if ownership transition planning is not well developed.
- With 20 staff supporting 30,000 billable hours, the firm’s operating model appears relatively lean, which may limit capacity to absorb growth, turnover, or workflow disruption without service strain.
- The revenue mix is concentrated in audit (40%) and tax (40%), so the firm’s earnings profile is tied to two core service lines rather than a more diversified mix, increasing sensitivity to shifts in those practices.
- EBOC at 50% implies half of gross revenue is consumed by operating costs, leaving limited cushion if staffing, compensation, or overhead pressures rise.