- The firm generates $8.0 million of gross revenue, indicating a meaningful revenue base for a buyer to underwrite.
- With 30,000 billable hours, the firm demonstrates substantial production capacity and workload volume.
- The firm reports 50% EBOC, which provides a clear profitability metric for valuation analysis.
- Revenue per partner is $2.0 million, suggesting significant revenue concentration at the partner level.
- The partner group includes four partners with ages of 34, 45, 45, and 54, showing a mix of mid-career and more senior ownership ages.
- EBOC is 50%, which leaves only a limited earnings margin for a buyer to underwrite and can constrain valuation multiples.
- Revenue is concentrated across just 4 partners at $2,000,000 per partner, creating meaningful partner-dependency and succession risk if any one equity owner exits or reduces involvement.
- With only 20 staff supporting $8,000,000 of revenue, the firm’s scale is relatively modest, which can limit operating leverage and integration flexibility for a buyer.
- Improve revenue per partner and overall scale, as current gross revenue of $8.0 million across 4 partners implies $2.0 million per partner, suggesting room to expand the platform before a transition event.
- Increase leverage by growing the 20-person staff base relative to 4 partners, which could support additional billable capacity and reduce partner concentration in delivery.
- Preserve and potentially enhance the 50% EBOC margin by maintaining disciplined pricing and utilization as the firm scales, since current profitability provides a solid base for valuation expansion.
- Build succession depth around the partner group, as the age mix of 45, 45, 34, and 54 indicates a manageable but uneven transition profile that could be strengthened to support continuity and buyer confidence.
- The firm’s 50% EBOC margin is solid but leaves limited room for valuation upside if a buyer expects further operational improvement from an $8.0M revenue base.
- Revenue is concentrated across only 4 partners, creating key-person dependence and succession risk even though the partner ages are currently mid-career to early-50s.
- With 20 staff supporting 30,000 billable hours, the firm’s operating model may be sensitive to workload imbalance or turnover if utilization slips.
- Revenue per partner of $2.0M is strong, but it also indicates that a meaningful portion of enterprise value is tied to a small partner group rather than a broader management bench.