- The firm generates $8.0 million of gross revenue, which provides meaningful scale for a buyer to underwrite.
- All revenue is consulting revenue at 100%, giving the practice a fully service-based revenue mix.
- EBOC is 50%, indicating a high operating margin relative to revenue.
- The firm produces 30,000 billable hours, showing substantial utilization capacity and an established delivery base.
- With 4 partners and 20 staff, the firm has a defined operating structure that supports the current revenue base.
- Revenue per partner is $2.0 million, which is a material productivity metric from a valuation perspective.
- EBOC of 50% suggests only moderate earnings conversion, limiting valuation support versus higher-margin firms.
- The firm is 100% consulting revenue, creating full dependence on a single service line and reducing diversification for a buyer.
- With only 4 partners and $2,000,000 revenue per partner, the business appears highly concentrated at the partner level, which can elevate transition and retention risk.
- The staff base of 20 against 4 partners indicates a relatively small operating platform, which can constrain scalability and breadth of management depth.
- Increase revenue per partner from the current $2.0M level by expanding billable capacity and/or pricing, as the firm already generates $8.0M of gross revenue with 30,000 billable hours and only 4 partners.
- Improve leverage by adding or developing staff beneath the 4 partners and 20 staff, which could support more billable hours and reduce partner concentration in delivery.
- Preserve and potentially enhance the 50% EBOC margin by tightening utilization, pricing discipline, and delivery efficiency, since profitability is already strong and directly valuation-supportive.
- Build on the firm’s 100% consulting revenue mix by deepening the existing advisory platform, which may support higher-growth, higher-value work if the current service model is scaled effectively.
- Plan for leadership continuity and growth runway given the relatively young partner group at age 32, which supports a longer operating horizon and potential expansion of the partner bench.
- Revenue is concentrated in consulting at 100% of gross revenue, which leaves the business highly dependent on a single service line and may limit diversification benefits in valuation.
- The firm’s scale is modest at $8.0M gross revenue with 4 partners and 20 staff, which can create key-person and capacity risk if any partner or senior staff member is unavailable.
- Revenue per partner of $2.0M is high relative to the small partner group, suggesting meaningful dependence on a limited number of rainmakers and potential succession pressure.
- Billable hours of 30,000 across 20 staff indicate a relatively lean operating base, which may constrain growth and increase execution risk if demand rises or utilization slips.
- The firm’s EBOC margin of 50% is strong, but it also means valuation is sensitive to maintaining current profitability levels, with limited room for margin compression.