- The firm generates $8.0 million of gross revenue, which is a meaningful scale indicator for a buyer.
- Revenue per partner is $2.0 million, suggesting substantial partner-level production relative to the four-partner structure.
- The practice reports 30,000 billable hours, indicating a significant volume of fee-earning work.
- EBOC is 50%, providing a clear profitability metric for valuation analysis.
- The firm has 20 staff supporting 4 partners, showing a 5:1 staff-to-partner ratio that may support operating leverage.
- EBOC is 50%, which leaves only moderate profit conversion and limits earnings quality for a valuation buyer.
- The firm generates $2,000,000 of revenue per partner across only 4 partners, indicating a relatively small ownership base that can constrain scale and transition flexibility.
- With just 20 staff supporting $8,000,000 of revenue, the firm’s operating platform appears modest in size, which may limit capacity for larger engagements or rapid expansion.
- Increase revenue per partner from the current $2.0M level by expanding billable capacity or pricing, as the firm has 30,000 billable hours across 4 partners and 20 staff.
- Improve operating leverage by adding or better utilizing staff against partner capacity, since the firm’s 50% EBOC margin suggests room to convert scale into higher profitability.
- Preserve and monetize the firm’s current partner base while planning succession, as all four partners are the same age and the business is concentrated at the partner level.
- Grow gross revenue from the current $8.0M base by increasing billable hours or average realization, which would directly support valuation through a larger earnings base.
- The firm’s 50% EBOC margin may be vulnerable if compensation, overhead, or utilization deteriorate, as the current profitability level is a key support for valuation.
- Revenue is concentrated across only four partners, with each effectively tied to about $2.0 million of revenue, creating key-person and transition risk if any partner’s production changes.
- The partner group is uniformly listed at age 20, which suggests the age data may be unreliable or incomplete and limits confidence in assessing succession and continuity risk.
- With 20 staff supporting $8.0 million of gross revenue, the staffing base is relatively lean, which can increase execution risk if workload rises or if turnover occurs.
- Billable hours of 30,000 against $8.0 million of revenue imply meaningful dependence on sustained utilization, so any slowdown in billable production could pressure earnings and valuation.