test 2 firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • Consulting is the largest revenue stream at 56% of gross revenue, indicating a meaningful advisory mix relative to the firm’s overall $8.0 million revenue base.
  • The firm generates $8.0 million of gross revenue with 4 partners, equating to $2.0 million of revenue per partner, which is a material productivity metric for valuation analysis.
  • EBITDA before owner compensation is 50%, suggesting strong pre-owner-compensation earnings relative to revenue.
  • The practice has 30,000 billable hours, showing a substantial volume of chargeable work supporting the revenue base.
  • Audit and tax each contribute 22% of revenue, providing diversified recurring compliance work alongside the larger consulting segment.
Weaknesses
  • EBOC at 50% indicates only half of revenue is available after owner compensation, which limits valuation relative to firms with higher profitability.
  • The firm has 56% of revenue in consulting, creating a relatively concentrated service mix that may warrant a discount versus a more balanced practice.
  • With just 4 partners and 20 staff, the firm is a small platform, which can constrain scale and reduce buyer flexibility in integration.
  • Revenue per partner of $2,000,000 suggests meaningful partner dependence, increasing key-person risk for a buyer.
Opportunities
  • Increase audit and tax mix from the current 22% each by expanding recurring compliance work, which could reduce reliance on consulting-heavy revenue and improve revenue stability.
  • Leverage the high consulting concentration at 56% of revenue to deepen higher-value advisory offerings and support continued margin strength, given the 50% EBOC margin.
  • Build scale through the 20-person team and 30,000 billable hours to improve leverage and utilization across the four-partner structure, supporting higher revenue per partner.
  • Use the relatively young partner group, with partner ages around 32, to extend the firm’s growth runway and support longer-term continuity and value creation.
Threats
  • Revenue is concentrated in consulting at 56% of gross revenue, so valuation may be more sensitive to any slowdown in that service line.
  • The firm has only four partners, which creates key-person and succession risk because a relatively small number of owners support the entire practice.
  • Revenue per partner of 2.0 million is high relative to the 20-person staff base, suggesting operational leverage and potential execution strain if workload or retention weakens.
  • Audit and tax each represent 22% of revenue, leaving the firm with a mixed but still limited diversification profile that may increase earnings volatility if one service line underperforms.
  • The partner age field shows 32, which may indicate a younger ownership group and therefore less immediate succession pressure, but also less evidence of mature transition planning from the data provided.
Enhance Profitability

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

37.50% 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

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.

[0, 0]

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.