Orange Firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$7,000,000
Annual Gross Revenue
46.43%
EBITDA Margin
$13M - $14.6M
Valuation Range
92.86%
Economic Profit%
1
No. of Equity Partners
$233/hr
Avg Client Rate ($/hr)
78
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $7.0M of gross revenue with only one partner, implying a high revenue concentration per partner and a $7.0M revenue-per-partner figure.
  • EBOC is 50%, which indicates that half of gross revenue remains after employee-related costs and is a material support to earnings quality.
  • Revenue is diversified across audit, consulting, and tax, with each line representing 32% of revenue and no single service line dominating the mix.
  • The firm reports 30,000 billable hours, providing a concrete operating base that supports the current revenue level.
  • The practice has 78 staff members, giving it meaningful delivery capacity relative to its revenue base.
Weaknesses
  • The firm’s EBOC of 50% indicates only moderate earnings conversion, which can pressure valuation versus higher-margin firms.
  • Revenue is effectively concentrated in a single partner, with 1 partner generating $7,000,000 and a 78-year-old ownership base, creating clear succession and key-person risk for a buyer.
  • The practice is relatively large for one partner, with $7,000,000 of revenue supported by just 1 partner, which increases transition dependence and limits institutional depth.
  • Revenue is evenly split across audit, tax, and consulting at 32% each, but no service line is dominant, which may limit the strategic premium buyers pay for a differentiated specialty mix.
Opportunities
  • Reduce key-person risk and improve succession visibility by addressing the single-partner structure, as all $7.0M of revenue is currently concentrated with one partner age 78.
  • Increase leverage and scalability by expanding partner depth or senior leadership, since 78 staff support only one partner and the firm already has 30,000 billable hours.
  • Improve valuation through mix optimization and cross-sell by building on the balanced revenue base of 32% audit, 32% consulting, and 32% tax to deepen client wallet share.
  • Enhance profitability by protecting and potentially expanding the 50% EBOC margin through tighter utilization and pricing discipline across the 30,000 billable hours.
  • Support growth without overreliance on the current owner by converting the firm’s $7.0M revenue base into a broader management platform with more distributed client and relationship ownership.
Threats
  • Single-partner structure is a key continuity risk, as the firm has 1 partner and the partner age is 78, creating succession and transition uncertainty.
  • Profitability appears only moderate with EBOC at 50% of gross revenue, which may limit valuation upside relative to higher-margin firms.
  • The firm’s revenue is split evenly across audit, consulting, and tax at 32% each, indicating a mixed-service model that may be harder to scale or optimize than a more focused practice.
  • With 78 staff supporting $7.0 million of gross revenue, the staffing base is relatively large versus revenue, which can pressure operating efficiency and integration economics.
Enhance Profitability

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

46.43% 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 78:1
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.