Orange Firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
46.88%
EBITDA Margin
$18.8M - $24.4M
Valuation Range
93.75%
Economic Profit%
1
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
32
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 with 32 staff and one partner, indicating a meaningful revenue base concentrated under a simple ownership structure.
  • EBOC is 50%, which supports a solid earnings profile from a buyer’s valuation perspective.
  • Revenue is diversified across audit, consulting, and tax, with each at 32% of revenue, reducing dependence on any single service line.
  • The firm reports 30,000 billable hours, providing evidence of substantial operating scale and workload volume.
  • Revenue per partner is $8.0 million, reflecting a high level of revenue concentration per equity owner.
Weaknesses
  • EBOC is 50%, which points to a midrange earnings margin that may limit valuation relative to higher-margin firms.
  • The firm has only 1 partner, creating acute key-person and succession risk, especially with the partner age at 78.
  • Revenue is evenly split across audit, tax, and consulting at 32% each, so the business lacks a dominant specialty and shows no clear mix advantage in any one line of service.
  • Revenue per partner is $8,000,000 with just one partner, indicating a highly concentrated ownership and management structure that increases buyer dependency on a single individual.
Opportunities
  • Increase partner depth and succession readiness, as the firm has only 1 partner who is age 78, creating key-person and continuity risk that can weigh on valuation.
  • Build scale through additional partner or senior leadership capacity, since $8.0 million of gross revenue is currently concentrated under a single partner and 32 staff.
  • Leverage the balanced service mix across audit, tax, and consulting, with each at 32% of revenue, to cross-sell and deepen client relationships without overreliance on any one line of business.
  • Improve operating leverage and margin conversion, as EBOC is 50% of gross revenue, suggesting room to enhance profitability through better staffing mix, pricing, or process efficiency.
  • Expand billable capacity and productivity, given 30,000 billable hours and 32 staff, by increasing utilization and/or adding higher-value work to support revenue growth.
Threats
  • The firm has only one partner and the partner age is 78, creating a clear succession and continuity risk that could affect client retention and transaction timing.
  • Partner leverage appears limited with 1 partner supporting 32 staff, which may constrain oversight, decision-making capacity, and post-close transition resilience.
  • Revenue is concentrated in three equal service lines—audit, consulting, and tax each at 32%—so the business lacks a dominant specialty and may face earnings volatility if any one line softens.
  • At $8.0 million of gross revenue with 30,000 billable hours, the practice appears operationally dependent on sustained high utilization, leaving limited room for productivity disruption.
  • EBOC at 50% suggests only moderate conversion of revenue into operating earnings, which can cap valuation upside relative to firms with stronger margin profiles.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

46.88% 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 32:1
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

Adding even one partner can eliminate the -1.0 to -1.5 multiple penalty, potentially increasing firm value by 25-40%.
Reducing average partner age below 60 or having a clear succession plan can add 0.5-1.0x to your multiple, increasing value by 15-25%.

[-1.0, -1.5]

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.