tcs
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 $8.0 million of gross revenue, which is a material revenue base for valuation analysis.
  • With 4 partners and 20 staff, the firm has a defined operating structure that supports a meaningful service capacity.
  • Revenue is concentrated in core accounting services, with audit at 70% and tax at 70% of revenue, indicating a clear service mix for buyers to underwrite.
  • Consulting also represents 70% of revenue, showing an additional service line that is explicitly reflected in the financial data.
  • The firm reports 30,000 billable hours, providing a concrete workload metric that supports revenue production analysis.
  • Revenue per partner is $2.0 million, which is a useful productivity metric for buyer valuation review.
Weaknesses
  • EBOC is only 50%, which points to a mid-range earnings conversion level that can cap valuation versus higher-margin firms.
  • Revenue is concentrated across all three service lines—Audit 70%, Tax 70%, and Consulting 70%—indicating limited diversification in the reported revenue mix.
  • With 30,000 total billable hours and $8,000,000 of gross revenue, the firm generates about $267 of revenue per billable hour, which may constrain pricing leverage relative to stronger-fee peers.
  • Four partners share $8,000,000 of revenue, or $2,000,000 per partner, which suggests meaningful partner dependence for a firm of this size.
Opportunities
  • Increase revenue per partner from the current $2.0 million level by expanding billable capacity or improving pricing and realization across the existing 30,000 billable hours base.
  • Improve operating leverage and margin by scaling the 20-staff platform relative to four partners, which may support higher throughput without proportional partner growth.
  • Diversify the revenue mix beyond the current 70% concentration in audit, consulting, and tax each, reducing dependence on any single service line and supporting a more balanced earnings profile.
  • Strengthen succession and continuity value by planning around the four partners’ identical age profile, which can reduce key-person risk and support a smoother ownership transition.
  • Expand higher-value advisory work within the existing consulting mix to lift earnings quality and potentially improve valuation multiples versus a more compliance-heavy profile.
Threats
  • The firm appears highly dependent on a very small partner group, with 4 partners and all partner ages shown as 20, which raises succession and continuity risk if one or more partners are unavailable or depart.
  • Staffing may be tight relative to scale, with 20 staff supporting $8.0M of gross revenue and 30,000 billable hours, which can create execution and capacity risk if utilization or retention weakens.
  • Revenue mix is concentrated in a narrow set of service lines, with audit revenue at 70%, tax revenue at 70%, and consulting revenue at 70%, limiting diversification and making earnings more sensitive to changes in any one practice area.
  • The firm’s EBOC margin is 50%, which is solid but still leaves meaningful exposure to margin compression if compensation, staffing, or overhead costs rise.
  • Revenue per partner of $2.0M suggests the business is materially reliant on each partner’s production, increasing key-person risk and reducing resilience to partner-level disruption.
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.