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, which is a material revenue base for valuation analysis.
  • Revenue per partner is $2.0 million, indicating substantial partner-level production relative to the four-partner structure.
  • The firm reports 30,000 billable hours, providing evidence of meaningful operating scale and workload volume.
  • EBOC is 50%, which is a clear profitability metric that supports valuation discussions.
  • The firm has 20 staff supporting 4 partners, showing a staffed operating model with leverage behind partner production.
Weaknesses
  • EBOC of 50% indicates only half of gross revenue is converting to owner-level earnings, which pressures valuation versus higher-margin firms.
  • The firm’s scale is modest at $8,000,000 of gross revenue, which can limit buyer flexibility and reduce attractiveness relative to larger platforms.
  • With only 4 partners, revenue is concentrated in a small ownership group, creating succession and transition sensitivity if any partner departs.
  • A staff base of 20 against 30,000 total billable hours suggests a relatively lean operating footprint, which may constrain capacity to absorb growth without additional hiring.
  • Revenue per partner of $2,000,000 is solid, but the low partner count means that key relationships and production are more likely to be concentrated at the partner level.
Opportunities
  • With 50% EBOC on $8.0M of gross revenue, there is room to improve operating leverage and expand EBITDA through tighter cost control and productivity gains.
  • At 30,000 billable hours across 20 staff and 4 partners, the firm may be able to increase revenue by improving capacity utilization and converting more staff hours into billable work.
  • Revenue per partner of $2.0M suggests an opportunity to deepen partner leverage by delegating more execution to staff and focusing partners on higher-value client development and oversight.
  • The current 4-partner structure provides a platform to scale by adding capacity or succession depth, which could support growth without proportionate increases in partner concentration.
  • With partner ages at 30, the firm has a long runway to build value through sustained growth and compounding of client relationships over time.
Threats
  • The firm’s EBOC margin of 50% on $8.0M gross revenue suggests profitability is solid but still leaves meaningful earnings sensitivity if billing or utilization softens.
  • With 30,000 billable hours across 20 staff, the practice depends on a relatively concentrated labor base, so any staffing disruption or productivity decline could materially affect throughput.
  • Revenue per partner of $2.0M across 4 partners indicates earnings generation is concentrated at the partner level, which can create succession and continuity risk if one or more partners reduce involvement.
  • The reported partner age of 30 suggests a younger ownership group, which may imply limited near-term succession pressure but also less established long-term transition history for a buyer to underwrite.
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.