Red Firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $8,000,000 in gross revenue, which supports a meaningful market presence for valuation purposes.
  • Revenue per partner of $2,000,000 indicates high partner productivity relative to the size of the ownership group.
  • The firm has a balanced service mix across audit, tax, and consulting, with each line of service representing 70% of revenue, which suggests diversification across multiple service areas.
  • With 30,000 total billable hours and 20 staff, the firm shows a substantial operating base that can support its current revenue level.
  • The partner group is relatively young, with ages ranging from 20 to 30, which may support longer continuity and retention of ownership capacity.
Weaknesses
  • Revenue appears heavily concentrated in audit, tax, and consulting services, which may indicate limited diversification and greater exposure to cyclical demand changes in core service lines.
  • The firm is located in Romblon, which may limit market depth, buyer interest, and the scale of growth opportunities relative to larger commercial centers.
  • The firm has a relatively small headcount of 20 staff supporting $8.0 million of revenue, which could indicate key-person dependency or capacity constraints if workload increases or professionals depart.
  • The partner group is young and concentrated at only four partners, which may suggest a short visible succession runway and potential continuity risk if the firm relies heavily on these individuals.
  • Revenue per partner of $2.0 million is high relative to the small partner group, which may indicate concentration of client relationships or production in a limited number of owners.
Opportunities
  • The firm may be able to improve valuation by increasing revenue per partner through scaling the current $8.0 million revenue base across four partners.
  • With all three service lines at 70% of revenue, there is an opportunity to broaden and deepen the existing audit, tax, and consulting mix to support more diversified growth.
  • Given the 50% EBOC, the firm may have room to improve operating performance and cash flow through greater efficiency and leverage of its 20-person staff base.
  • The relatively young partner group suggests the firm may be positioned to support continuity and longer-term growth if it continues to develop leadership capacity.
  • Operating from Romblon, the firm may be able to strengthen its local market position and expand share within its existing geographic base.
Threats
  • Revenue is highly concentrated in audit, tax, and consulting, with each service line shown at 70%, which may indicate limited diversification and greater sensitivity to changes in any one service area.
  • The firm is located in Romblon, which may limit market depth and create geographic constraints on future growth and client acquisition.
  • The staff-to-partner structure is relatively lean at 20 staff and 4 partners, which could create operational strain if key personnel leave or workload increases.
  • Partner age data is unusual, with one partner listed at age 20 and the others at 30, which may indicate a young leadership base and potential succession or retention risk.
  • Revenue per partner of $2,000,000 is relatively high and may reflect concentration of client relationships or workloads at the partner level, increasing key-person risk.
Enhance Profitability

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

37.50% 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 5:1
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

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

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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.