- The firm generates $8.0 million of gross revenue, which is a meaningful revenue base from a buyer’s perspective.
- EBOC is 50%, indicating that half of gross revenue remains after owner compensation and is directly relevant to valuation.
- Revenue per partner is $2.0 million across 4 partners, showing substantial revenue concentration at the partner level.
- The firm reports 30,000 billable hours, providing evidence of significant operating volume.
- The partner group is age 56 across all 4 partners, which may indicate a relatively consistent ownership profile for transaction planning.
- EBOC is only 50%, which points to limited pre-owner profitability relative to revenue and can दबress valuation multiples.
- The firm is highly partner-dependent with 4 partners all age 56, creating a succession and transition risk that buyers will discount in pricing.
- Revenue per partner is $2,000,000 across only 4 partners, which indicates meaningful earnings concentration at the partner level and reduces scalability if a partner departs.
- With 20 staff supporting $8,000,000 of revenue, the firm’s scale is modest, which can limit operating leverage and make integration less efficient for a buyer.
- Increase revenue per partner by expanding the current $8.0 million firm across the four-partner base, as revenue per partner is $2.0 million and suggests room to improve scale leverage.
- Build a more diversified service mix beyond the current 1% audit, 1% consulting, and 1% tax revenue concentrations to reduce dependence on the core business and improve growth optionality.
- Improve operating leverage from the existing 20-staff platform and 30,000 billable hours by increasing utilization and/or adding higher-value work, which could support stronger earnings conversion from the 50% EBOC margin.
- Address succession and continuity risk given that all four partners are age 56, which may support a more durable valuation profile if managed proactively.
- The firm’s profitability is only moderate, with EBOC at 50% of gross revenue, which may limit valuation support relative to higher-margin practices.
- Partner succession risk appears elevated because all four partners are age 56, creating a concentrated transition profile over the medium term.
- The staffing base is relatively lean at 20 staff against 4 partners and 30,000 billable hours, which may constrain capacity, scalability, and key-person resilience.
- Revenue is highly concentrated in a single service mix, with audit, consulting, and tax each at only 1% of revenue, suggesting limited diversification of service lines.
- Revenue per partner is $2.0 million, which is solid but may be difficult to sustain if partner transition or staffing constraints affect production.