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 only one partner, implying a very high revenue concentration per partner of $8.0 million.
  • Earnings before owner compensation are 50% of revenue, indicating a strong pre-owner-compensation margin profile.
  • Revenue is diversified across audit, consulting, and tax, with each of those service lines representing 32% of revenue.
  • The firm reports 30,000 billable hours, showing a meaningful level of recurring production capacity.
  • The firm has 32 staff supporting a single partner, which provides substantial operating leverage relative to ownership count.
Weaknesses
  • The firm is entirely dependent on a single 78-year-old partner, creating significant succession and key-person risk that can pressure value and transition terms.
  • At $8.0 million of revenue supported by only one partner, the practice shows an extreme partner concentration that limits institutional durability and buyer scalability.
  • EBOC is 50%, which suggests only moderate earnings conversion relative to revenue and may constrain valuation versus higher-margin firms.
  • Revenue is evenly split across audit, tax, and consulting at 32% each, leaving no clearly dominant service line and indicating a mixed-book profile that may be less focused than specialized practices.
Opportunities
  • Increase partner depth and succession readiness, as the firm is currently highly concentrated with 1 partner aged 78, which creates key-person risk and may support a lower valuation multiple.
  • Leverage the existing balanced service mix across audit, tax, and consulting, each at 32% of revenue, to cross-sell more advisory work and improve revenue quality.
  • Expand billable capacity and leverage the 32-person staff base against 30,000 billable hours to drive higher throughput and scale revenue without adding partner concentration.
  • Improve operating efficiency and margin conversion from the current 50% EBOC margin, which could enhance earnings quality and valuation.
  • Grow revenue per partner from the current $8.0 million by broadening leadership capacity and reducing reliance on a single partner.
Threats
  • Single-partner structure with only 1 partner and a stated partner age of 78 creates immediate succession and continuity risk, especially given the $8.0M revenue base tied to one individual.
  • Staffing of 32 against $8.0M gross revenue and 30,000 billable hours suggests meaningful execution dependence on a relatively lean team, which may strain capacity and retention if the partner transitions.
  • Revenue is evenly split across audit (32%), consulting (32%), and tax (32%), so the firm lacks a clearly dominant service line and may face earnings volatility if any one practice softens.
  • Revenue per partner is $8.0M because there is only one partner, which indicates key-person concentration in production and client management rather than a broader partner bench.
  • EBOC at 50% implies only moderate operating conversion relative to gross revenue, leaving limited cushion if staffing or transition costs rise.
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.