- The firm generates $8.0 million of gross revenue, which is a material revenue base for a buyer to underwrite.
- EBOC is 50%, indicating that half of gross revenue remains after expenses before partner compensation and other owner-level items.
- The practice produces 30,000 billable hours, showing a substantial volume of chargeable work supporting the revenue base.
- The firm has 4 partners, which can support a manageable ownership transition and concentrated decision-making for a buyer.
- Revenue per partner is $2.0 million, a useful productivity metric that indicates meaningful revenue concentration at the partner level.
- EBOC is only 50%, which suggests limited operating margin relative to revenue and may pressure valuation.
- The firm generates $2,000,000 of revenue per partner across only 4 partners, indicating meaningful partner dependence and limited management depth if one partner exits.
- Increase revenue per partner by expanding the current $8.0M revenue base across 4 partners, which is only $2.0M per partner and suggests room to improve scale and leverage.
- Improve operating efficiency and realization on the 30,000 billable hours base to lift the 50% EBOC margin, creating direct valuation upside through higher profitability.
- Use the 20-staff platform to support additional billable capacity and reduce partner concentration of production, improving leverage and scalability.
- Plan for leadership continuity given all four partners are the same age, which creates a clear succession opportunity and reduces key-person risk for valuation purposes.
- At $8.0M of gross revenue across 4 partners, the firm is highly partner-dependent, which can create succession and continuity risk if one or more partners reduce involvement or exit.
- The reported partner ages of 20, 20, 20, and 20 provide no evidence of near-term succession planning or a mature partner transition profile, increasing uncertainty around leadership continuity.
- 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.
- Revenue per partner of $2.0M is strong, but it also indicates meaningful earnings concentration at the partner level, which can make valuation more sensitive to partner retention and productivity.
- An EBOC margin of 50% is solid, but it leaves limited room for margin compression if staffing costs, utilization, or partner productivity weaken.