whi
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$3,500,000
Annual Gross Revenue
15.71%
EBITDA Margin
$2,625,000 - $4,200,000
Valuation Range
52.38%
Economic Profit%
2
No. of Equity Partners
$117/hr
Avg Client Rate ($/hr)
20
Total Employees
70%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • Tax is the dominant revenue stream at 60% of gross revenue, providing a clear core practice for valuation support.
  • The firm generated $3.5 million of gross revenue, which is meaningful scale for a two-partner practice.
  • Revenue per partner is $1.75 million, indicating strong partner-level productivity based on the provided figures.
  • Consulting contributes 37% of revenue, giving the firm a diversified service mix beyond tax work.
  • The practice has stated niche focus areas in HNW, professional services firms, crypto, and 1041 work, which may support targeted buyer interest.
  • The firm reported 30,000 billable hours and 20 staff, showing an established operating base relative to its revenue.
Weaknesses
  • EBOC is only 30%, indicating a relatively thin earnings base for a $3.5 million practice.
  • The firm has just 2 partners against 20 staff, creating meaningful partner dependency and succession risk, especially with both partners at age 53.
  • Audit is only 3% of revenue, so the practice is heavily weighted to tax (60%) and consulting (37%), which concentrates valuation exposure in non-audit service lines.
  • Revenue per partner of $1.75 million underscores a small-partner platform that may limit scalability and increase key-person risk.
Opportunities
  • Increase audit and assurance revenue from the current 3% mix to improve recurring, lower-risk revenue balance and diversify away from the 60% tax concentration.
  • Expand consulting from 37% of revenue to build on the existing higher-value service line and support margin improvement, given the 30% EBOC margin.
  • Leverage the firm’s specialized niches in HNW, professional services firms, crypto, and 1041 to deepen expertise-based pricing and differentiate the practice in higher-complexity engagements.
  • Improve partner leverage and succession depth with only 2 partners and 20 staff, which could enhance scalability and reduce key-person concentration as the partners age 53.
  • Use the current $1.75 million revenue per partner as a base to grow throughput and realization through better staffing leverage and cross-selling across existing service lines.
Threats
  • Revenue is concentrated in tax work, with tax revenue at 60% of gross revenue, which can create earnings sensitivity if that line softens or requires additional capacity to sustain.
  • The firm has a relatively small ownership base of 2 partners, so the business may face key-person and continuity risk if either partner reduces involvement or exits.
  • Partner age is 53, which suggests succession planning may need to be addressed sooner rather than later to protect valuation and transition stability.
  • The practice is heavily weighted toward consulting at 37% of revenue versus only 3% from audit, indicating limited diversification across service lines and potential volatility if consulting demand changes.
  • With 20 staff supporting $3.5 million of gross revenue and 30,000 billable hours, the firm may have limited operational depth, making growth and coverage more dependent on a lean team.
Enhance Profitability

Increasing EBITDA margin to 25-30% could increase firm value by 25-40%.

15.71% 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 10:1
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

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.