Demo Firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
43.75%
EBITDA Margin
$24.5M - $35M
Valuation Range
87.50%
Economic Profit%
2
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
50
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $8.0 million of gross revenue, which is supported by $4.0 million of revenue per partner based on two partners.
  • Consulting and tax each account for 40% of revenue, indicating a diversified service mix with meaningful non-audit recurring work.
  • Audit represents 20% of revenue, providing a balanced practice profile rather than heavy dependence on assurance alone.
  • The firm reports 30,000 billable hours, which indicates a substantial operating base for its current size.
  • The practice includes 40 specialized niches, showing a broad set of defined service areas within the firm.
Weaknesses
  • EBOC at 50% suggests a mid-range earnings profile that may limit valuation relative to higher-margin firms.
  • The firm has only 2 partners supporting $8,000,000 of revenue, creating key-person and succession risk that can affect buyer confidence.
  • Revenue is spread across audit at 20%, tax at 40%, and consulting at 40%, indicating limited service-line dominance and potential earnings sensitivity if any one line softens.
  • With 50 staff and 30,000 billable hours, the practice is relatively small in scale, which can constrain operating leverage and integration appeal.
Opportunities
  • Increase audit and tax mix depth, as these recurring compliance lines together represent 60% of revenue and can support steadier cash flow and valuation quality.
  • Expand the consulting practice, which already contributes 40% of revenue, to improve growth and margin potential if the firm can maintain its 50% EBOC level.
  • Leverage the 40% specialized niche exposure to deepen expertise and differentiate the firm, supporting pricing power and more defensible client relationships.
  • Build scale around the current two-partner, 50-staff structure to reduce key-person concentration and improve operating leverage, especially given the 4.0 million revenue per partner profile.
  • Improve partner succession resilience, since both partners are around age 50, to protect continuity and reduce transition risk over the medium term.
Threats
  • Revenue is concentrated in consulting and tax work, which together account for 80% of gross revenue, leaving the firm more exposed to swings in those service lines than a more diversified practice.
  • The firm has only two partners, so leadership, client management, and succession risk are elevated if one partner reduces involvement or exits.
  • Partner age is 50, which suggests succession planning may need to be addressed in the medium term to avoid a future transition gap.
  • Specialized niches represent 40% of the practice, indicating meaningful dependence on niche expertise that may be harder to replace or scale if key personnel change.
  • With 50 staff supporting $8.0 million of gross revenue and 30,000 billable hours, the firm may face operating leverage pressure if utilization or realization softens.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

43.75% EBITDA margin
Operational Efficiency

You are doing a great job on leverage, continue to look for opportunities to push work down to the appropriate levels, and remember that leverage is your biggest pathway to high levels of profitability

Leverage ratio 25:1
Revenue Acceleration

Without a defined growth rate, growth may be accelerated by adding advisory services, pursuing tuck-in mergers, or onboarding a lateral partner with an existing book of business.

+15–25% revenue growth
Risk Mitigation

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

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This preliminary valuation range is for discussion purposes only, based on unverified information, and is highly sensitive to assumptions. It does not constitute a formal valuation or transaction guidance and should not be relied upon by any party for decision-making purposes.