JB CPA
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$2,100,000
Annual Gross Revenue
13.10%
EBITDA Margin
$1,575,000 - $2,520,000
Valuation Range
52.38%
Economic Profit%
1
No. of Equity Partners
$300/hr
Avg Client Rate ($/hr)
10
Total Employees
75%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $2.1 million of gross revenue with 60% from consulting and 40% from tax, providing a diversified revenue mix across two service lines.
  • The practice produces 7,000 billable hours, indicating a meaningful level of fee-earning activity to support current revenue.
  • EBOC is 25%, which provides a clear profitability metric for valuation analysis.
  • Revenue per partner is $2.1 million, reflecting the full revenue base being attributable to a single-partner structure.
  • The firm has 10 staff supporting one partner, indicating leverage in the delivery model.
Weaknesses
  • EBOC is only 25%, which points to limited earnings quality and compresses valuation.
  • The firm has just one partner age 60, creating a clear succession and key-person risk for a buyer.
  • Revenue is concentrated in consulting at 60%, leaving only 40% in tax and increasing dependence on a single service line.
  • At $2.1 million of revenue across only one partner, the practice has limited scale and high owner dependence from a valuation standpoint.
  • With 10 staff supporting $2.1 million of revenue, the firm may have limited operating leverage and capacity to absorb partner transition or growth initiatives.
Opportunities
  • Increase partner depth and succession readiness, as the firm is currently a one-partner practice with the partner age at 60, which creates key-person risk and limits scalability.
  • Expand billable capacity and leverage the 10-person staff base, since 7,000 billable hours on $2.1 million of gross revenue suggests room to improve utilization and revenue generation per employee.
  • Grow the consulting mix further, given consulting already represents 60% of revenue and typically supports stronger valuation than more commoditized work when execution is consistent.
  • Protect and potentially improve margins, as the firm’s 25% EBOC margin indicates a solid but still expandable earnings base that could benefit from better pricing, mix, or operating leverage.
  • Develop the tax practice selectively, since tax revenue is 40% of total revenue and could provide a more balanced recurring service mix if expanded without diluting margins.
Threats
  • Single-partner structure creates key-person and succession risk, as the firm has 1 partner and the partner age is 60.
  • Operating leverage appears limited by scale, with only 10 staff supporting $2.1M of gross revenue and 7,000 billable hours, which may constrain growth and continuity.
  • Profitability is moderate rather than strong, with EBOC at 25% of revenue, leaving less cushion if staffing, utilization, or overhead pressure increases.
  • Revenue mix is concentrated in consulting at 60% of revenue, so performance is more exposed to that service line than a more diversified practice.
  • Tax work represents 40% of revenue, indicating meaningful dependence on a second service line and potential earnings volatility if that segment softens.
Enhance Profitability

Improving EBITDA margin from 13.10% to 25% could increase firm value by 50-100%.

13.10% 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 10:1
Revenue Acceleration

Growing revenue above $5M increases base multiples from 4-5x to 5.5-7.5x, potentially adding 30-50% to firm value.

Risk Mitigation

Adding even one partner can eliminate the -1.0 to -1.5 multiple penalty, potentially increasing firm value by 25-40%.
Proactive succession planning can prevent future multiple reductions and maintain firm value.

[-1.0, -1.5]

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.