JB
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$2,100,000
Annual Gross Revenue
6.19%
EBITDA Margin
$1,575,000 - $2,520,000
Valuation Range
20.63%
Economic Profit%
2
No. of Equity Partners
$300/hr
Avg Client Rate ($/hr)
10
Total Employees
70%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • Revenue is diversified across tax (40%), consulting (40%), and audit (20%), which reduces dependence on a single service line.
  • Gross revenue of $2.1 million provides a meaningful revenue base for a two-partner firm.
  • Revenue per partner of $1.05 million indicates substantial production at the partner level.
  • EBOC margin of 30% suggests the firm converts revenue into earnings at a measurable level.
  • The firm reports 7,000 billable hours, indicating a sizable volume of chargeable work supporting current revenue.
Weaknesses
  • EBOC is only 30%, which points to a relatively thin earnings base for valuation support.
  • The firm has just 2 partners generating $2.1 million of revenue, creating partner dependency and limited leadership depth.
  • Audit represents only 20% of revenue, indicating a smaller recurring assurance base relative to tax and consulting.
  • Consulting is 40% of revenue, so a large share of the firm is tied to non-recurring advisory work rather than stable compliance revenue.
  • With 10 staff supporting 7,000 billable hours, the firm’s scale is modest and may limit operational leverage for a buyer.
Opportunities
  • Increase the share of higher-value consulting and tax work, which already represent 40% each of revenue, to improve mix and support valuation multiple expansion.
  • Grow total revenue by leveraging the current two-partner platform and 10 staff, as revenue per partner is $1.05 million on $2.1 million of gross revenue.
  • Improve operating efficiency and margin conversion from the current 30% EBOC level by tightening leverage and workflow across 7,000 billable hours.
  • Expand audit revenue from its current 20% mix where appropriate, to create a more balanced service portfolio and reduce dependence on consulting and tax concentration.
Threats
  • At $2.1m gross revenue with only 2 partners, the firm’s revenue is concentrated at the partner level, creating key-person and succession risk if either partner reduces involvement or exits.
  • The staffing base of 10 employees against 7,000 billable hours suggests a relatively lean operating model, which can constrain capacity, increase workload pressure, and make growth harder to absorb without additional hiring.
  • With consulting at 40% and tax at 40% of revenue, the practice is heavily dependent on two service lines, which can make earnings more sensitive to shifts in mix, pricing, or demand within those areas.
  • EBOC at 30% of gross revenue indicates a moderate margin profile, leaving limited cushion if compensation, staffing, or overhead costs rise.
  • Partner ages are listed as 45, which does not indicate immediate retirement risk, but it does mean the firm still needs a clear long-term succession path to protect value over time.
Enhance Profitability

Improving EBITDA margin from 6.19% to 25% could increase firm value by 50-100%.

6.19% 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

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

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.

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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.