Paul 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 $8.0 million of gross revenue, providing meaningful scale from a valuation perspective.
  • Revenue is concentrated in recurring core service lines, with audit, tax, and consulting each representing 70% of revenue as reported in the data.
  • The practice has 30,000 billable hours, indicating substantial operating volume.
  • With 4 partners and 20 staff, the firm has a defined operating structure that supports current revenue production.
  • Derived revenue per partner is $2.0 million, which is a material productivity metric for buyer analysis.
Weaknesses
  • EBOC of 50% indicates only moderate earnings conversion, which can constrain valuation versus higher-margin firms.
  • Revenue per partner of $2,000,000 across only 4 partners suggests the business is highly partner-dependent and may face key-person/succession risk if any partner exits.
  • The firm has only 20 staff against 4 partners and 30,000 total billable hours, which points to a relatively small operating platform that may limit scalability.
  • Audit revenue, tax revenue, and consulting revenue are each 70%, indicating overlapping concentration in the same core service lines and limited evidence of meaningful diversification.
Opportunities
  • Increase revenue per partner from the current $2.0M level by expanding capacity, delegation, or partner leverage across the 4-partner, 20-staff platform.
  • Improve profitability by lifting the 50% EBOC margin through tighter cost control and better operating leverage on the $8.0M revenue base.
  • Broaden and balance the service mix, as the firm is heavily concentrated in audit and tax at 70% each and consulting at 70%, which suggests room to deepen higher-value advisory work if supported by existing capabilities.
  • Scale billable output from the current 30,000 billable hours by improving utilization and throughput across the 20-person staff base.
  • Position for continuity and transition value by addressing the concentrated partner age profile, with all four partners at age 20 as provided in the data.
Threats
  • The firm appears highly concentrated in a small partner group, with 4 partners and all partner ages shown as 20, which may create succession and continuity risk if any partner departs or is unable to work.
  • Staffing capacity may be tight relative to scale, with 20 staff supporting $8.0M of gross revenue and 30,000 billable hours, which could pressure delivery quality and scalability during busy periods.
  • Revenue mix is heavily weighted toward audit, tax, and consulting at 70% each in the provided data, suggesting limited diversification across service lines and potential earnings volatility if any one service line softens.
  • EBOC is 50% of gross revenue, which is solid but still leaves meaningful sensitivity to margin compression from labor cost increases or utilization declines.
  • Revenue per partner is $2.0M, indicating the firm’s economics are dependent on a relatively small number of owners and may be exposed to partner-level productivity changes.
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.