Ocra
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$3,000,000
Annual Gross Revenue
41.67%
EBITDA Margin
$2,250,000 - $3,600,000
Valuation Range
83.33%
Economic Profit%
1
No. of Equity Partners
$100/hr
Avg Client Rate ($/hr)
1
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $3.0M of gross revenue with only one partner, indicating a high revenue concentration per equity owner and a $3.0M revenue-per-partner figure.
  • Billable hours total 30,000, which supports a meaningful operating scale for a two-person firm structure.
  • EBOC is 50%, showing that half of gross revenue remains after operating expenses before owner compensation and other adjustments.
  • The partner age is 78, which may create a near-term succession event that a buyer could potentially address through transition planning.
Weaknesses
  • EBOC of 50% indicates modest earnings conversion and limits valuation upside versus higher-margin firms.
  • The firm is effectively a solo-practitioner platform with 1 partner and 1 staff member supporting $3,000,000 of revenue, creating key-person and operational concentration risk.
  • The sole partner is 78 years old, which creates immediate succession and continuity risk for a buyer.
  • Revenue per partner is $3,000,000, underscoring extreme dependence on one individual for all production and client relationships.
Opportunities
  • The firm has a significant succession and key-person risk because all $3.0M of revenue is concentrated with a single 78-year-old partner, creating an opportunity to de-risk value through transition planning and leadership depth.
  • With only 1 staff member supporting 30,000 billable hours and $3.0M of revenue, there is an opportunity to improve leverage and scalability by adding capacity and reducing owner dependency.
  • An EBOC margin of 50% suggests room to enhance profitability through tighter expense control and workflow efficiency, which could directly support valuation.
  • Revenue per partner of $3.0M indicates strong individual productivity, creating an opportunity to preserve and institutionalize that production through documented processes and client transition.
  • The absence of practice detail suggests a potential opportunity to broaden or formalize service mix only if it can be built from the existing revenue base and staffing structure.
Threats
  • The firm is highly key-person dependent, with 1 partner and 1 staff member supporting $3.0M of revenue, which creates significant continuity and execution risk if the partner is unavailable or transitions out.
  • Partner succession risk is elevated because the sole partner is age 78, increasing the likelihood of an ownership and leadership transition that could disrupt client service and deal certainty.
  • Operational capacity appears constrained, as 30,000 billable hours are being generated by only one staff member alongside the partner, suggesting limited depth to absorb workload spikes or turnover.
  • The business is concentrated in a single revenue-producing partner, with revenue per partner of $3.0M, which can make valuation more sensitive to retention and post-close integration risk.
  • While EBOC margin is strong at 50%, the small team size means profitability may be difficult to sustain if even modest staffing disruption or replacement costs arise.
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

Improving leverage to 5:1 can increase profitability and firm value by 20-35%.

Leverage ratio 1:1
Revenue Acceleration

Growing revenue above $5M increases base multiples from 4-5x to 5.5-7.5x, potentially adding 30-50% to firm value.

Risk Mitigation

Adding even one partner can eliminate the -1.0 to -1.5 multiple penalty, potentially increasing firm value by 25-40%.
Reducing average partner age below 60 or having a clear succession plan can add 0.5-1.0x to your multiple, increasing value by 15-25%.

[-1.0, -1.5]

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.