Paul Testing
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $8.0M of gross revenue, which provides meaningful scale from a buyer’s perspective.
  • Revenue per partner is $2.0M, indicating a high level of partner productivity relative to the four-partner structure.
  • The firm produces 30,000 billable hours, showing a substantial volume of chargeable work supporting the revenue base.
  • EBOC is 50%, which indicates that half of gross revenue remains after operating expenses before partner compensation and other items.
  • The firm has 20 staff supporting four partners, suggesting a leverage structure that can help convert partner capacity into billable output.
Weaknesses
  • EBOC is only 50%, leaving a relatively thin earnings base for a buyer once partner compensation and overhead are considered.
  • Revenue per partner is $2,000,000 across only 4 partners, indicating meaningful individual partner dependence and limited management redundancy.
  • With just 20 staff supporting $8,000,000 of revenue, the firm has a modest operating scale that may constrain leverage and buyer integration efficiency.
  • Partner ages of 30 suggest a very young partner group, which can raise succession and retention uncertainty because the firm appears to rely on a small cohort for continuity.
Opportunities
  • At 50% EBOC on $8.0M of gross revenue, there is room to improve operating leverage and expand EBITDA through tighter cost control and/or pricing discipline.
  • With 30,000 billable hours across 20 staff, the firm may be able to increase revenue and margin by improving utilization and capacity management.
  • At $2.0M of revenue per partner across 4 partners, there is an opportunity to scale partner productivity and reduce key-person concentration by broadening revenue generation.
  • The current 4-partner structure suggests room to deepen management leverage by delegating more delivery work to staff and focusing partners on higher-value client and business development activities.
  • Given the absence of practice detail in the data, a conservative opportunity is to sharpen service mix and pricing around the firm’s existing work to support higher realized margins.
Threats
  • At $8.0M of gross revenue supported by only 4 partners, the firm shows a relatively high dependence on a small leadership group, which can create key-person and succession risk if one or more partners step back.
  • The firm’s 20 staff against 30,000 billable hours implies a lean operating model that may be vulnerable to capacity constraints, overtime pressure, or service disruption if utilization slips or turnover rises.
  • Revenue per partner of $2.0M is strong, but it also indicates that a meaningful share of firm economics is concentrated at the partner level, increasing sensitivity to partner retention and continuity.
  • An EBOC margin of 50% is healthy, but it leaves less room for earnings volatility than a higher-margin platform, so any increase in compensation, staffing, or overhead could pressure valuation.
Enhance Profitability

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

37.50% 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 5:1
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.