- The firm generates $3.0 million of gross revenue with only one partner, resulting in $3.0 million of revenue per partner, which is highly material from a buyer’s valuation perspective.
- EBOC is 50%, indicating that half of gross revenue remains after operating expenses before partner compensation and taxes.
- Revenue is diversified across audit, consulting, and tax, with each service line contributing 32% of revenue, reducing reliance on any single practice area.
- The firm reports 30,000 billable hours, providing a clear operating base that supports the current revenue level.
- The firm’s partner count is 1, which can simplify governance and transaction execution for a buyer.
- EBOC of 50% indicates only moderate profitability, which can compress valuation compared with higher-margin peers.
- The firm appears highly dependent on a single partner, with 1 partner, 1 staff member, and the full $3,000,000 of revenue per partner concentrated in one owner, creating key-person and succession risk.
- At age 78, the sole partner presents an immediate transition risk that buyers will price into the deal.
- The practice is narrowly scaled at $3,000,000 of revenue and only 30,000 total billable hours, which limits operating leverage and makes the platform less resilient than larger firms.
- Revenue is evenly split across audit, tax, and consulting at 32% each, leaving no clearly dominant specialty and suggesting a relatively undifferentiated service mix.
- Reduce key-person risk and improve transferability by building a broader partner bench, as the firm currently has 1 partner and revenue is concentrated at $3.0M per partner.
- Increase operational leverage by adding staff capacity, since the firm has only 1 staff member supporting 30,000 billable hours and a $3.0M revenue base.
- Preserve and potentially expand the higher-value consulting and tax mix, with consulting at 32% of revenue and tax at 32%, to support margin and valuation quality.
- Protect and enhance profitability by maintaining or improving the 50% EBOC margin, which provides room for scale or reinvestment without sacrificing earnings quality.
- Improve succession readiness given the partner age of 78, which creates a clear opportunity to de-risk continuity and support a smoother transition for buyers.
- Single-partner structure is a key continuity risk, as the firm has 1 partner and the partner age is 78, increasing succession and transition uncertainty.
- The staffing base is extremely thin relative to scale, with only 1 staff member supporting $3.0M of gross revenue and 30,000 billable hours, creating execution and capacity risk.
- Revenue is concentrated in a narrow service mix, with audit, consulting, and tax each at 32% of revenue, which limits diversification and can make performance more sensitive to weakness in any one line.
- The firm’s earnings before owner compensation are only 50% of gross revenue, which may indicate meaningful operating cost pressure and limit cash flow available to support growth or transition.
- Revenue per partner is $3.0M with only one partner, which suggests the business is highly dependent on a single individual and may be difficult to transfer without disruption.