fawfaw
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
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 with 4 partners, equating to $2.0 million of revenue per partner.
  • The practice has 30,000 billable hours, indicating a meaningful operating base of chargeable work.
  • Audit represents 70% of revenue, providing a clearly defined core service line.
  • Tax represents 70% of revenue, showing a substantial tax practice within the revenue mix.
  • Consulting represents 70% of revenue, indicating an additional material service line alongside compliance work.
  • The firm has 20 staff supporting 4 partners, which provides a 5:1 staff-to-partner ratio.
Weaknesses
  • EBOC is only 50%, which indicates a moderate earnings margin and limits valuation leverage versus higher-margin firms.
  • The practice shows heavy service-line concentration, with audit, tax, and consulting each at 70% of revenue, reducing diversification and increasing exposure to those segments.
  • With 30,000 billable hours against $8,000,000 of revenue, the implied revenue per billable hour is about $267, which may constrain pricing power.
  • The firm has only 4 partners and 20 staff, indicating a relatively small operating scale that can limit absorption of overhead and post-close expansion capacity.
  • Partner ages are all 20, so the data does not provide a normal retirement/succession profile that a buyer could underwrite as a de-risking factor.
Opportunities
  • Increase revenue per partner from the current $2.0 million level by expanding partner-led production and/or adding leverage, as the firm has 4 partners and 20 staff supporting $8.0 million of gross revenue.
  • Improve profitability by lifting the 50% EBOC margin, which would have a direct valuation impact given the current earnings profile.
  • Broaden and balance the service mix beyond the current 70% audit, 70% tax, and 70% consulting revenue concentrations to reduce dependence on any single line and support more stable growth.
  • Scale billable capacity more efficiently across the existing 30,000 billable hours and 20-person staff base to convert more labor capacity into revenue without requiring immediate partner growth.
  • Plan for succession and continuity given the partner ages shown as 20, 20, 20, and 20, which may support long-term value preservation and reduce key-person risk.
Threats
  • The firm appears highly concentrated in a small partner group, with 4 partners and all partner ages shown as 20, which may indicate limited succession depth and key-person dependence.
  • Staffing leverage may be tight for the scale of the practice, with 20 staff supporting $8.0M of gross revenue and 30,000 billable hours, creating execution and capacity risk if utilization slips.
  • Revenue mix is heavily weighted toward audit and tax, each at 70%, which suggests limited diversification across service lines and may constrain resilience if demand in either core area softens.
  • Consulting is also shown at 70% of revenue, indicating overlapping or inconsistent service-mix reporting that reduces clarity on the true earnings profile and can complicate valuation diligence.
  • Revenue per partner of $2.0M is solid, but with only 4 partners it leaves the business exposed to meaningful earnings volatility if one partner reduces involvement or departs.
Enhance Profitability

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

37.50% 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 5:1
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.

[0, 0]

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.