- The firm generates $8.0 million of gross revenue, which is a meaningful scale indicator for valuation analysis.
- Revenue per partner is $2.0 million, indicating strong partner-level productivity based on the provided figures.
- The firm reports 30,000 billable hours, showing a substantial volume of fee-earning work.
- EBOC is 50%, providing a clear profitability metric for assessing earnings quality.
- The firm has 4 partners and 20 staff, giving a defined operating structure with a 5:1 staff-to-partner ratio based on the supplied headcount.
- EBOC is only 50%, indicating limited earnings conversion and a materially lower margin profile for buyers valuing the practice on sustainable cash flow.
- Revenue per partner is $2.0 million across only 4 partners, which can create key-person exposure and limits management redundancy if a partner departs.
- The firm generates $8.0 million of revenue with just 20 staff, a lean staffing base that may constrain scalability and operational resilience.
- Total billable hours of 30,000 on $8.0 million of revenue implies a relatively modest revenue yield per billable hour, which can pressure valuation if buyers underwrite efficiency risk.
- Improve operating leverage and margin expansion by scaling the 20-person staff base against 4 partners, as the current structure suggests room to increase partner productivity and reduce reliance on partner labor.
- Increase billable-hour output from the 30,000 annual billable hours to support revenue growth without adding proportionate partner count, which could enhance valuation through higher throughput.
- Build on the strong 50% EBOC margin by maintaining disciplined cost control while growing revenue from the current $8.0 million base, preserving profitability as the firm scales.
- Raise revenue per partner from the current $2.0 million by expanding work volume and/or improving realization, which would strengthen partner productivity and support a higher valuation multiple.
- At $8.0M of gross revenue supported by only 4 partners and 20 staff, the firm appears relatively concentrated in a small leadership base, which can create execution and continuity risk if any partner underperforms or departs.
- Revenue per partner of $2.0M is high relative to the small partner group, suggesting meaningful dependence on each partner’s personal production and limiting scalability if partner capacity becomes constrained.
- With 30,000 billable hours across 24 total personnel, the firm’s operating model may be sensitive to utilization and staffing efficiency, so any drop in billable demand or productivity could pressure earnings.
- An EBOC margin of 50% is solid but still leaves limited room for cost overruns or pricing pressure, which could reduce cash flow if expenses rise faster than revenue.