- The firm generates $8.0 million of gross revenue, which is a meaningful scale for a buyer to underwrite.
- Revenue is diversified across consulting (40%), audit (30%), and tax (30%), reducing reliance on any single service line.
- The firm produces $2.0 million of revenue per partner based on four partners and $8.0 million of gross revenue, indicating substantial partner-level productivity.
- The practice reports 30,000 billable hours, providing clear evidence of a sizable operating base.
- EBOC is 50%, which is a directly stated profitability metric that may support valuation discussions.
- EBOC is 50%, which suggests only moderate profit conversion and can pressure valuation relative to higher-margin firms.
- With $8,000,000 of revenue spread across 4 partners, revenue per partner is $2,000,000, indicating limited scale at the partner level.
- The firm’s revenue mix is split 30% audit, 30% tax, and 40% consulting, leaving no dominant core practice and increasing dependency on multiple service lines.
- The practice has 20 staff supporting 4 partners, a 5.0:1 staff-to-partner ratio that may limit leverage if partner time remains heavily involved in delivery.
- Increase the share of higher-value consulting work, as consulting already represents 40% of revenue and is the largest service line, supporting mix-driven margin and valuation improvement.
- Expand audit and tax cross-sell within the existing client base, since audit and tax each contribute 30% of revenue and can deepen wallet share without requiring new service lines.
- Improve operating leverage and capacity utilization across 30,000 billable hours and 20 staff, which could lift the current 50% EBOC margin through better workflow, staffing mix, or pricing discipline.
- Scale revenue per partner, currently $2.0 million across 4 partners, by adding capacity or increasing realization so growth is less dependent on the existing partner group.
- Plan for succession and continuity around the 45-year-old partner group, as maintaining leadership stability can support client retention and preserve enterprise value.
- At $8.0 million of gross revenue with only 4 partners, the firm’s $2.0 million revenue per partner indicates meaningful key-person dependence and potential transition risk if partner capacity changes.
- The staffing base of 20 employees against 30,000 billable hours suggests a relatively lean operating model, which may limit scalability and increase execution risk if demand rises or turnover occurs.
- With 50% EBOC, profitability is solid but still leaves limited cushion for margin compression, making earnings more sensitive to cost increases or utilization pressure.
- Revenue is concentrated in consulting (40%) and audit/tax (30% each), so any slowdown in one major service line would have an outsized effect on overall performance.