SWCPAs
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$1,700,000
Annual Gross Revenue
44.59%
EBITDA Margin
$2,653,000 - $3,411,000
Valuation Range
60.25%
Economic Profit%
2
No. of Equity Partners
$61/hr
Avg Client Rate ($/hr)
17
Total Employees
26%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $1.7 million of gross revenue with only 2 partners, implying $850,000 of revenue per partner.
  • The practice produces 28,000 billable hours, indicating a meaningful level of fee-earning capacity.
  • Tax work represents 69% of revenue, providing a clear core service mix anchored in tax.
  • Consulting contributes 31% of revenue, giving the firm a diversified non-tax revenue stream.
  • EBOC is 74%, which supports a relatively high earnings conversion profile on the reported financials.
Weaknesses
  • EBOC of 74% suggests margins are not exceptional for a firm of this size, which can cap valuation upside for a buyer focused on profitability.
  • Revenue is concentrated in tax work at 69%, creating service-line dependence that may limit diversification value and make earnings more sensitive to tax-market demand.
  • The firm has only 2 partners supporting $1.7 million of revenue, which increases key-person dependence and succession risk from a buyer’s perspective.
Opportunities
  • Increase the consulting mix from 31% of revenue to improve service-line diversification and support higher-value advisory work relative to tax-only revenue.
  • Leverage the strong 74% EBOC margin by maintaining pricing discipline and operational efficiency, preserving the firm’s attractive profitability profile.
  • Build scale beyond the current 2-partner, 17-staff structure to reduce key-person concentration and improve operating leverage as the firm grows.
  • Plan for partner succession and continuity given the partners’ age of 53, which can support valuation by reducing transition risk.
  • Expand billable hours from the current 28,000 base to spread fixed overhead across a larger revenue base and enhance revenue per partner, currently $850,000.
Threats
  • With only 2 partners and one listed age of 53, the firm appears highly dependent on a small ownership base, which can create succession and continuity risk if one partner exits or reduces involvement.
  • Revenue of $1.7M spread across just 2 partners implies $850K per partner, so any disruption at the partner level could have an outsized impact on earnings and client delivery capacity.
  • The staff base of 17 against 28,000 billable hours suggests a relatively lean operating model, which may limit scalability and increase execution risk during periods of growth or turnover.
  • Consulting revenue is 31% of gross revenue versus 69% tax revenue, indicating a meaningful but secondary service line mix that may be less stable if consulting demand softens or requires different capabilities than the core tax practice.
Enhance Profitability

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

44.59% 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 8.5:1
Revenue Acceleration

Growing revenue above $5M increases base multiples from 4-5x to 5.5-7.5x, potentially adding 30-50% to firm value.

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.