- The firm generates $8.0 million of gross revenue, which provides meaningful scale from a valuation perspective.
- Revenue is diversified across consulting (40%), audit (30%), and tax (30%), reducing reliance on any single service line.
- The firm reports 30,000 billable hours, indicating a substantial recurring workload base.
- With 4 partners and 20 staff, the firm has a defined operating structure that supports its current revenue base.
- Revenue per partner is $2.0 million, which is a useful productivity metric for buyer underwriting.
- EBOC is 50%, indicating that half of gross revenue remains after operating expenses before owner compensation and other adjustments.
- EBOC is 50%, indicating only moderate earnings conversion and limiting valuation support relative to stronger margin profiles.
- The firm generates $2,000,000 of revenue per partner across just 4 partners, which can create key-person concentration and succession risk in a buyer underwriting process.
- Revenue is split across audit at 30%, tax at 30%, and consulting at 40%, leaving the firm without a dominant recurring service line and increasing mix complexity for a buyer.
- Total billable hours of 30,000 across 20 staff imply a relatively modest scale, which can limit operating leverage and integration efficiency for an acquirer.
- Increase the higher-margin consulting mix, which already represents 40% of revenue, to improve overall profitability and valuation quality.
- Expand tax services, which account for 30% of revenue, to deepen recurring client relationships and diversify the revenue base.
- Leverage the firm’s 30,000 billable hours across 20 staff to improve utilization and capacity absorption, supporting revenue growth without proportional headcount increases.
- Build on the firm’s strong EBOC margin of 50% by maintaining disciplined pricing and cost control as the practice scales.
- Increase partner productivity and scalability, as 4 partners generate $8.0 million of gross revenue and $2.0 million of revenue per partner, indicating room to further leverage the partner group.
- Consulting and audit together account for 70% of revenue (40% consulting, 30% audit), so the firm’s earnings profile is materially dependent on two service lines rather than a broader mix.
- The firm has only 4 partners and 20 staff, which creates key-person and capacity risk given the $8.0M revenue base and 30,000 billable hours.
- Revenue per partner of $2.0M is high relative to the small partner group, which may indicate concentration of client relationships and execution burden at the partner level.
- EBOC is 50% of gross revenue, which is solid but leaves limited cushion if pricing, utilization, or staffing costs weaken.
- Tax work represents 30% of revenue, so a meaningful share of the firm’s earnings is tied to a single compliance-heavy service line that may be sensitive to workload variability.