Kaplan & Associates CPAs PLLC
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$1,745,000
Annual Gross Revenue
45.67%
EBITDA Margin
$2,391,000 - $2,391,000
Valuation Range
76.12%
Economic Profit%
1
No. of Equity Partners
$230/hr
Avg Client Rate ($/hr)
4
Total Employees
40%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $1.745 million of gross revenue with only one partner, which implies full concentration of revenue at the partner level and a revenue per partner of $1.745 million.
  • Tax work represents 70% of revenue, providing a clearly defined and valuation-relevant core service mix.
  • Consulting contributes 30% of revenue, adding a meaningful non-tax service component to the practice mix.
  • The firm reports 7,600 billable hours, indicating a measurable level of production supporting the current revenue base.
  • The practice is focused on small business, high net worth, and trusts and estates niches, giving the buyer a defined specialization profile.
  • The firm has one partner age 69 and four staff, which is a compact operating structure that a buyer can evaluate directly for transition planning.
Weaknesses
  • The firm is a one-partner practice with the sole partner age 69, creating meaningful succession and key-person risk for a buyer.
  • Revenue is concentrated in tax work at 70%, which limits service-line diversification and can make earnings more dependent on a single practice area.
  • At $1.745 million of gross revenue supported by only 7,600 billable hours, the practice shows limited operating scale, which can constrain buyer flexibility and post-close leverage.
  • The staff base is only 4 employees against 1 partner, indicating a lean platform that may be vulnerable to capacity constraints and concentrated execution risk.
Opportunities
  • Increase the consulting revenue mix from 30% by expanding advisory work alongside the existing tax-heavy practice, which could improve valuation through higher-margin recurring services.
  • Leverage the firm’s specialized niches in small business, high net worth, and trusts and estates to deepen expertise and support fee growth within clearly defined client segments.
  • Build operating leverage by adding staff to the current 1-partner/4-staff structure, which may help absorb more billable hours and support revenue growth without relying solely on the partner.
  • Address key succession risk from the 69-year-old sole partner by developing a transition plan that protects continuity and preserves enterprise value.
  • Improve scale by converting the firm’s $1.745 million of gross revenue into a broader management structure, which could reduce key-person dependence and enhance marketability.
Threats
  • Single-partner structure with the sole partner age listed as 69 creates key-person and near-term succession risk, which can affect continuity and valuation durability.
  • The firm’s small operating base of 1 partner and 4 staff may limit capacity to absorb workload, support growth, and maintain service continuity if turnover occurs.
  • Revenue is concentrated in tax work at 70% of gross revenue, making earnings more dependent on a single service line and less diversified across the practice.
  • Consulting contributes only 30% of revenue, so the practice appears relatively narrow in service mix, which may constrain cross-sell potential and resilience if demand shifts within the existing client base.
  • Billable hours of 7,600 against a 5-person firm indicate meaningful utilization pressure, which can increase dependence on current personnel and reduce flexibility for transition or expansion.
Enhance Profitability

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

45.67% 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 4:1
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.