Paul Test
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 material at the transaction level.
  • Revenue is concentrated in recurring compliance work, with audit, tax, and consulting each representing 70% of revenue as provided in the data.
  • The practice produces 30,000 billable hours, indicating a meaningful operating scale.
  • With 4 partners and 20 staff, the firm has a 5:1 staff-to-partner ratio that supports delivery capacity.
  • Revenue per partner is $2.0 million, which is a useful valuation metric for assessing partner productivity.
  • EBOC is 50%, providing a clear profitability indicator for buyer underwriting.
Weaknesses
  • EBOC is 50%, indicating only half of gross revenue is converting to owner earnings before compensation and creating limited margin support for valuation.
  • Revenue is concentrated across Audit, Tax, and Consulting at 70% each, which points to heavy dependence on a narrow service mix rather than a diversified revenue base.
  • The firm produces $2,000,000 of revenue per partner with only 4 partners, which can increase key-person dependency and reduce transferability of earnings if partner production is not retained.
  • With 30,000 billable hours and 20 staff, the firm has about 1,500 billable hours per staff member, which may indicate a relatively modest scale base for spreading overhead and supporting valuation multiples.
Opportunities
  • Improve revenue mix by expanding the consulting and tax practices, as both are already 70% of revenue and can support higher-value service lines if scaled further.
  • Increase operating leverage by growing the 20-person staff base relative to 4 partners, which could raise partner productivity and support additional billable hours beyond the current 30,000.
  • Enhance profitability by lifting the 50% EBOC margin through tighter pricing, utilization, and delivery discipline, which would directly improve valuation.
  • Reduce key-person concentration risk by developing succession depth around the four partners, whose ages are all listed as 20, to support continuity and transferability.
  • Build scale from the current $8.0 million gross revenue base and $2.0 million revenue per partner, which may improve marketability and broaden acquisition appeal.
Threats
  • The firm appears highly concentrated in a small partner group, with 4 partners and all partner ages shown as 20, which creates key-person and succession risk if continuity or retention changes.
  • Staffing may be tight relative to scale, with 20 staff supporting $8.0M of gross revenue and 30,000 billable hours, which could pressure delivery capacity and limit scalability.
  • Profitability appears only moderate, with EBOC at 50% of gross revenue, leaving less cushion for compensation, reinvestment, and valuation support than a higher-margin practice.
  • Revenue mix is heavily weighted to audit, consulting, and tax at 70% each in the provided fields, indicating the practice may be dependent on a narrow set of service lines rather than a more diversified mix.
  • Revenue per partner of $2.0M is strong but also suggests meaningful reliance on each partner’s production, which can increase transition risk in a transaction or post-close integration.
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.

[0, 0]

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.