- The firm generates $8.0 million of gross revenue, indicating meaningful scale for a four-partner practice.
- Revenue per partner is $2.0 million, which suggests each partner supports a substantial amount of firm production.
- The firm produced 30,000 billable hours, reflecting a sizable volume of chargeable work supporting the revenue base.
- An EBOC margin of 50% indicates that half of gross revenue remains after operating expenses, which is a solid profitability level on the provided data.
- With 20 staff supporting 4 partners, the firm has a 5-to-1 staff-to-partner ratio that can help provide operating capacity for its billable workload.
- All four partners are age 54, which creates potential near- to medium-term succession and transition risk if retirement timing is not staggered.
- The firm’s revenue is concentrated across only four partners, increasing key-person dependence and execution risk if any partner disengages or leaves.
- The provided data does not show diversification by service line, client base, or geography beyond a single listed location, which may indicate concentration risk from a valuation perspective.
- Improve pricing and realization to lift revenue per billable hour, as the firm’s $8.0 million of revenue across 30,000 billable hours suggests room to enhance rate discipline.
- Increase leverage by expanding the staff-to-partner model, with 20 staff supporting 4 partners, to allow partners to focus on higher-value advisory and business development activities.
- Develop succession and transition planning now, since all four partners are the same age at 54, to reduce key-person risk and support continuity for valuation purposes.
- Build on the current $2.0 million revenue per partner by adding capacity or advisory offerings that can increase partner productivity without materially increasing ownership concentration.
- All four partners are age 54, which suggests a concentrated succession and transition risk if retirement timing is not well managed.
- The firm’s revenue is generated by only four partners, creating meaningful key-person dependence and potential client retention risk if any partner departs.
- With 20 staff supporting 30,000 billable hours, the firm may face staffing capacity and workload pressure if it must replace partner-led production or absorb turnover.