Jolly Roger CPA
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$185M
Annual Gross Revenue
26.49%
EBITDA Margin
$539M - $759.5M
Valuation Range
66.22%
Economic Profit%
100
No. of Equity Partners
$296/hr
Avg Client Rate ($/hr)
800
Total Employees
60%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm has a diversified revenue mix, with audit at 50%, tax at 40%, and consulting at 10%, which reduces dependence on any single service line.
  • Gross revenue of $185,000,000 and 800 staff indicate a substantial operating scale that can support a buyer’s platform or integration thesis.
  • With 100 partners and derived revenue per partner of $1,850,000, the firm shows strong revenue productivity at the partner level.
  • EBOC of 40% suggests a meaningful level of earnings conversion relative to revenue, which is relevant to valuation analysis.
  • The firm reports 625,000 billable hours, indicating a large volume of fee-earning capacity underpinning the revenue base.
Weaknesses
  • EBOC of 40% indicates a relatively modest profitability margin for a firm of this size, which can limit valuation multiples relative to higher-margin peers.
  • Audit and tax account for 90% of revenue (50% audit, 40% tax), leaving only 10% from consulting and creating a concentrated service mix that may constrain upside and diversification.
  • Revenue per partner of $1,850,000 across 100 partners suggests meaningful partner-level scaling requirements, which can pressure governance and post-transaction integration complexity.
  • With 800 staff supporting 100 partners, the firm has an 8:1 staff-to-partner ratio, indicating a relatively broad operating base that may add cost and management complexity to protect margins.
Opportunities
  • Increase the consulting mix from 10% to improve revenue diversification and potentially lift margins, given the current heavy concentration in audit and tax at 50% and 40% of revenue, respectively.
  • Expand partner leverage by growing the 800-person staff base relative to 100 partners, which could support higher billable capacity and improve revenue per partner from the current $1.85 million.
  • Use the firm’s substantial scale of $185 million gross revenue and 625,000 billable hours to drive operational efficiencies and standardize delivery, supporting margin improvement from the current 40% EBOC level.
  • Plan for leadership continuity and retention as the partner group is concentrated at age 50, which may help preserve client relationships and protect valuation over time.
Threats
Enhance Profitability

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

26.49% 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 8:1
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.