- The firm generates $8.0 million of gross revenue, which provides meaningful scale for a buyer’s valuation analysis.
- With 30,000 billable hours, the practice demonstrates substantial operating volume and capacity utilization.
- The firm reports 50% EBOC, indicating a significant earnings conversion level relative to revenue.
- Revenue per partner is $2.0 million across 4 partners, showing a high level of revenue concentration per equity owner.
- The partner group is listed at ages 20, 20, 20, and 20, which provides a clear and uniform partner-age profile in the provided data.
- EBOC is 50%, leaving only about 50% of gross revenue as earnings before owner compensation and limiting valuation leverage relative to higher-margin firms.
- Revenue per partner is $2,000,000 across only 4 partners, which indicates the business is still highly partner-centered and may require buyer reliance on a small leadership group.
- The firm has just 20 staff versus 4 partners, a 5:1 staff-to-partner ratio that suggests limited operating scale and potentially constrained capacity to absorb growth without added leadership depth.
- Increase revenue per partner by leveraging the current 4-partner structure and 20-staff base to take on more work without adding proportional partner capacity, supporting scale and valuation.
- Improve profitability from the 50% EBOC margin by tightening utilization, pricing, and staffing leverage across the 30,000 billable hours to expand earnings quality.
- Build succession and continuity value by formalizing transition planning around the four partners, all shown at age 20 in the data, to reduce key-person risk and support a smoother ownership transfer.
- Expand top-line revenue from the current $8.0 million base by increasing billable hours or average realization, which would improve scale and strengthen the firm’s market position.
- The firm’s 50% EBOC margin is solid, but the absolute gross revenue of $8.0M may still limit scale and valuation resilience versus larger platforms.
- Revenue is concentrated in only four partners, creating key-person dependency because each partner represents about $2.0M of revenue based on the provided revenue-per-partner metric.
- Partner ages are all listed as 20, which suggests an unusually young ownership group and may indicate limited succession depth or experience risk relative to a mature advisory firm.
- With 20 staff supporting 30,000 billable hours, the operating model appears lean, which can constrain capacity and increase execution risk if demand rises or turnover occurs.