- The firm generates $8.0 million of gross revenue, which is a material revenue base for valuation analysis.
- Revenue is concentrated in core accounting services, with audit at 70% and tax at 70%, indicating substantial recurring compliance work.
- Consulting revenue is also reported at 70%, showing an additional service line that contributes meaningfully to the firm’s mix.
- The firm produces 30,000 billable hours, providing a clear operating scale for buyer diligence.
- With 4 partners and 20 staff, the firm has a defined operating structure that supports its current revenue base.
- Derived revenue per partner is $2.0 million, which is a useful productivity metric in assessing partner-level economics.
- EBOC of 50% indicates only half of gross revenue is converting to earnings before owner compensation, which pressures valuation on profitability.
- The firm is concentrated in audit work at 70% of revenue, creating service-line dependency that can reduce valuation flexibility.
- Tax revenue is also 70% of revenue, indicating limited service diversification and further concentration risk for a buyer.
- Consulting revenue is 70% of revenue, showing the firm is spread across overlapping revenue classifications without evidence of a diversified mix that would support a premium multiple.
- With 4 partners generating $2,000,000 of revenue each, the business appears partner-dependent and may face succession or continuity risk if a partner exits, especially given all partner ages are listed as 20.
- Increase revenue per partner from the current $2.0 million level by expanding partner-led production or adding capacity, as the firm has only 4 partners supporting $8.0 million of gross revenue.
- Leverage the 20-staff platform to improve leverage and throughput, since the firm has 30,000 billable hours and a 4-to-20 partner-to-staff structure that can support more delegated work.
- Improve margin conversion from the current 50% EBOC level by tightening pricing, realization, and delivery efficiency across the existing audit, tax, and consulting base.
- Diversify and balance the service mix, as revenue is concentrated in audit, tax, and consulting at 70% each in the provided data, indicating room to reduce dependence on any single service line.
- Position for continuity and valuation stability by addressing partner succession risk, since all four partners are listed at age 20, which suggests a very early-stage ownership profile in the data.
- Revenue is highly concentrated in audit and tax work, with both audit_revenue_percent and tax_revenue_percent at 70%, which can limit diversification and make earnings more dependent on those core service lines.
- The firm’s profitability appears moderate rather than exceptional, with eboc_percent at 50%, which may constrain valuation upside relative to higher-margin peers.
- Partner succession risk is elevated because all four partners are listed at age 20, suggesting a very young ownership profile and limited evidence of near-term transition planning.
- The staffing base is relatively lean at 20 staff against 4 partners and $8.0 million of gross revenue, which may indicate operational leverage and key-person dependence on the partner group.
- Revenue per partner is $2.0 million, which is solid but suggests the business may rely heavily on each partner’s individual production and retention capacity.