- The firm generates $80.0 million of gross revenue, which is a material scale indicator from a buyer’s valuation perspective.
- Consulting contributes 40% of revenue, providing a meaningful non-audit service mix that can support valuation resilience versus a more concentrated practice.
- Audit and tax each represent 30% of revenue, showing a balanced two-service revenue base rather than dependence on a single line of business.
- EBOC is 50%, indicating a strong earnings conversion level relative to revenue.
- The firm reports 30,000 billable hours, evidencing a substantial operating workload that supports the stated revenue base.
- With 4 partners and 20 staff, the firm has a defined operating structure, and the derived revenue per partner of $20.0 million is high on a per-partner basis.
- EBOC is 50%, which leaves only half of gross revenue available before partner compensation and can pressure valuation on an earnings basis.
- The firm has only 4 partners supporting $80,000,000 of gross revenue, creating meaningful key-person and succession risk because partner depth is limited.
- Revenue is split across audit (30%), tax (30%), and consulting (40%), so buyers will underwrite a diversified mix rather than a single dominant recurring line.
- With 20 staff and 30,000 total billable hours, the practice is operating at a relatively high revenue-per-staff scale that may be harder to sustain without added capacity.
- Revenue per partner of $20,000,000 is very high relative to the 4-partner structure, which increases dependence on a small ownership group for client retention and execution.
- Increase higher-value consulting and tax work, which already represent 40% and 30% of revenue respectively, to improve mix and support valuation.
- Expand partner leverage by building on 4 partners supported by 20 staff, which can increase capacity and reduce dependence on partner time.
- Improve profitability by lifting the 50% EBOC margin through better pricing, realization, or delivery efficiency, creating direct value uplift.
- Grow billable volume above the current 30,000 billable hours to spread fixed partner and staff capacity across a larger revenue base.
- Preserve and scale the current large revenue base of $80,000,000 while maintaining the existing service mix, as the firm already shows meaningful size and diversification.
- Consulting and audit together account for 70% of revenue (40% consulting, 30% audit), leaving the firm exposed to a relatively narrow service mix if demand shifts within its core offerings.
- The firm has only 4 partners and 20 staff supporting $80.0M of gross revenue, which suggests a lean operating structure and potential key-person or capacity risk if any senior resource departs or is unavailable.
- Revenue per partner is $20.0M, indicating significant reliance on each partner’s production and relationship management, which can create succession and continuity risk in a transaction.
- EBOC is 50% of gross revenue, which is solid but still leaves meaningful sensitivity to margin pressure if staffing, compensation, or utilization trends weaken.
- Billable hours of 30,000 across 20 staff imply a high workload per employee, which may increase execution risk and reduce flexibility to absorb growth or turnover.