Merger Testing
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
  • The firm generates $8.0M of gross revenue, which is a meaningful scale for a buyer evaluating transaction size and integration economics.
  • Revenue per partner is $2.0M, indicating a high level of partner productivity relative to the four-partner structure.
  • The firm reports 30,000 billable hours, providing a substantial volume of chargeable work to support recurring revenue generation.
  • EBOC is 50%, which suggests a material portion of revenue is retained after operating costs and is relevant to valuation analysis.
  • The firm has 20 staff supporting four partners, giving it a 5:1 staff-to-partner ratio that can support delivery capacity.
Weaknesses
  • EBITDA/EBOC margin is only 50%, which limits owner earnings available to support valuation and debt capacity.
  • The firm has 4 partners generating $2,000,000 of revenue per partner, indicating relatively concentrated production at the partner level.
  • With only 20 staff supporting $8,000,000 of revenue, the firm’s scale is modest, which can constrain operational depth and transactionability.
  • Partner ages are 30, so the firm appears early in partner lifecycle and may offer limited near-term retirement-driven transition opportunity for a buyer.
Opportunities
  • Increase partner leverage by expanding the 20-person staff base relative to 4 partners, which could support higher billable-hour capacity and revenue growth without proportional partner headcount growth.
  • Improve profitability from the current 50% EBOC margin by tightening delivery efficiency and pricing discipline, creating direct valuation upside through stronger earnings quality.
  • Scale billable production above the current 30,000 billable hours by adding capacity and improving utilization, which would better monetize the firm’s existing revenue base.
  • Build on the $2.0 million revenue per partner level by increasing non-partner execution capacity, allowing partners to focus more on higher-value client development and oversight.
  • Use the relatively young partner group age of 30 to support a longer growth runway and succession planning, which can enhance continuity and reduce key-person risk over time.
Threats
  • At $8.0M of gross revenue supported by 4 partners, the firm is highly dependent on a small leadership group, which increases key-person and succession risk if any partner reduces involvement or exits.
  • The partner age field shows 30, but with no evidence of a broader next-generation bench, the data suggests limited visible succession depth relative to the current partner-led structure.
  • With 20 staff generating 30,000 billable hours, the firm averages about 1,500 billable hours per employee, which may indicate limited operating leverage or underutilized capacity if demand softens.
  • Revenue per partner of $2.0M is strong, but it also means each partner carries a large share of firm economics, so partner-level disruption could have an outsized valuation impact.
  • An EBOC margin of 50% is healthy, but it still leaves half of revenue consumed by operating costs, so profitability could compress quickly if staffing or overhead rises faster than revenue.
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.

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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.