- The firm generated $1.85 million of gross revenue with a single partner, which supports a revenue-per-partner figure of $1.85 million.
- Consulting work represents 71% of revenue, indicating a revenue mix weighted toward advisory services.
- The firm reports 25% EBOC, providing a clear profitability metric for valuation analysis.
- The practice includes specialized niches in CAS and NFP Construction, showing defined service focus areas.
- The firm recorded 3,350 billable hours, evidencing a measurable level of production capacity.
- EBOC is only 25%, indicating relatively thin operating profitability for a buyer to underwrite.
- The firm is highly concentrated in consulting at 71% of revenue, which increases dependence on a single service line relative to tax at 29%.
- There is only 1 partner supporting $1.85 million of revenue, creating key-person dependence and succession risk from the buyer’s perspective.
- With just 3 staff and 3,350 total billable hours, the firm’s small operating base limits scale and may constrain post-close capacity expansion.
- The practice is narrow in scope around CAS and NFP Construction niches, which can make the revenue base less diversified for a buyer.
- Increase consulting mix and deepen advisory work, as consulting already represents 71% of revenue and is the clearest lever for higher-value growth.
- Expand and formalize the specialized niches in CAS and NFP Construction to strengthen differentiation and support pricing power within the existing practice mix.
- Build capacity beyond the current 1-partner/3-staff structure to reduce key-person dependence and improve scalability of the $1.85M revenue base.
- Improve operating leverage and margin conversion from the current 25% EBOC by adding capacity and process discipline without diluting the consulting-heavy mix.
- Develop succession depth around the 49-year-old sole partner to protect continuity and preserve enterprise value over time.
- Single-partner structure (1 partner, partner age 49) creates key-person dependency and succession risk, with all revenue and client relationships concentrated at one owner level.
- Lean staffing (3 staff against 3,350 billable hours and $1.85M gross revenue) suggests operational capacity strain and execution risk if workload increases or turnover occurs.
- Revenue mix is heavily weighted to consulting (71% consulting revenue versus 29% tax revenue), which may make earnings more sensitive to fluctuations in advisory demand and reduce recurring tax-related stability.
- EBOC of 25% indicates moderate profitability, leaving limited cushion if staffing costs, utilization, or overhead rise.
- Specialized niches in CAS and NFP Construction may support differentiation, but they also narrow the firm’s service focus and can limit scalability relative to a broader practice mix.