- Gross revenue of $8.0 million provides a meaningful revenue base for valuation analysis.
- The firm has 4 partners, with derived revenue per partner of $2.0 million, indicating substantial partner-level production.
- EBOC is 50%, which supports a strong profitability profile on the provided financial data.
- The firm generated 30,000 billable hours, showing a significant volume of chargeable work.
- Audit and tax each represent 20% of revenue, giving the firm two identifiable service lines with disclosed revenue mix.
- EBOC is 50%, which leaves only half of revenue available to cover overhead and debt service and can pressure buyer returns.
- Revenue per partner is only $2,000,000 across 4 partners, which may limit scale and reduce valuation versus larger partner platforms.
- Audit revenue is 20% and tax revenue is 20%, so 40% of revenue comes from these two service lines, creating meaningful concentration in a limited mix.
- The firm generates 30,000 billable hours on $8,000,000 of revenue, implying about $267 of revenue per billable hour, which can constrain profitability if rates or productivity soften.
- Increase the audit revenue mix from 20% to improve recurring, higher-value assurance work and diversify the current revenue base.
- Expand tax revenue beyond 20% to deepen cross-sell into existing client relationships and reduce reliance on the current service mix.
- Leverage the strong EBOC margin of 50% to support selective hiring or process investment that can scale billable capacity from the current 30,000 hours.
- Build on the current partner productivity of $2.0 million revenue per partner to increase throughput and support growth without immediate partner count expansion.
- Use the relatively young partner group (age 30) and 4-partner structure to create a longer operating runway for continuity and value creation.