Palmer-Farrington LLC
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$12M
Annual Gross Revenue
41.67%
EBITDA Margin
$37.5M - $47.5M
Valuation Range
83.33%
Economic Profit%
4
No. of Equity Partners
$40/hr
Avg Client Rate ($/hr)
100
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $12.0 million of gross revenue, giving a buyer meaningful scale to underwrite the transaction.
  • Revenue is diversified across consulting (40%), audit (30%), and tax (30%), which reduces dependence on any single service line.
  • The firm produces 300,000 billable hours, indicating substantial operating volume to support the revenue base.
  • With 4 partners and 100 staff, the firm has a sizable operating platform relative to its revenue.
  • Revenue per partner is $3.0 million, which is a useful valuation metric for assessing partner productivity.
  • EBOC is 50%, providing a clear profitability indicator for buyer diligence.
Weaknesses
  • EBITDA of 50% leaves limited room for a buyer to underwrite further margin improvement, since the firm is already operating at a high earnings level on $12,000,000 of revenue.
  • Revenue is evenly split across audit, tax, and consulting at 30%/30%/40%, which can make the earnings base less concentrated in a single higher-margin service line and more dependent on maintaining multiple practices.
  • With only 4 partners supporting $12,000,000 of revenue, the firm shows high partner dependency, and each partner is responsible for $3,000,000 of revenue, which can increase key-person risk in a transaction.
  • The firm reports 300,000 billable hours across 100 staff, but no utilization or realization data is provided, limiting a buyer’s ability to validate operating efficiency and supportable earnings quality from the disclosed metrics alone.
Opportunities
  • Increase the consulting mix, which already represents 40% of revenue, to support higher-value growth and potentially improve valuation multiples versus a more compliance-heavy mix.
  • Expand audit and tax cross-sell within the existing 30% audit and 30% tax revenue base to deepen client relationships and lift revenue per client without requiring a new service line.
  • Improve leverage by increasing partner-supported staff productivity across 100 staff and 4 partners, which could enhance scalability and protect the 50% EBOC margin as revenue grows.
  • Use the firm’s $3.0 million revenue per partner and 300,000 billable hours to identify pricing and realization opportunities that can raise throughput without proportionate partner expansion.
  • Plan for partner succession and continuity given the current partner age of 45, which supports longer-term stability and reduces key-person risk for valuation purposes.
Threats
  • Consulting represents 40% of revenue, creating a meaningful dependence on a single service line for overall performance and valuation stability.
  • Audit and tax together account for 60% of revenue, so the firm’s earnings profile remains concentrated in compliance work and may be less diversified than a broader advisory platform.
  • With 4 partners and $12.0 million of gross revenue, revenue per partner is $3.0 million, which can indicate key-person reliance and execution risk if partner productivity changes.
  • The firm has 100 staff supporting 300,000 billable hours, so maintaining utilization and staffing efficiency is important to preserve the reported 50% EBOC margin.
  • Partner ages are shown as 45, which suggests a mid-career ownership group and may imply future succession planning needs if the firm is to sustain current economics.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

41.67% 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 25:1
Revenue Acceleration

Without a defined growth rate, growth may be accelerated by adding advisory services, pursuing tuck-in mergers, or onboarding a lateral partner with an existing book of business.

+15–25% revenue growth
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.