test firm
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
  • All revenue is from consulting, with consulting revenue at 100%, which simplifies the revenue mix for a buyer.
  • The firm generated $8.0 million of gross revenue, indicating a meaningful scale for a small professional services practice.
  • With 4 partners and 20 staff, the firm has a 24-person operating base that supports service delivery capacity.
  • Revenue per partner is $2.0 million, which is a useful productivity indicator from a valuation perspective.
  • EBITDA before owner compensation is 50% of revenue, suggesting strong pre-owner-compensation earnings relative to revenue.
Weaknesses
  • The firm’s EBOC of 50% leaves only moderate earnings margin support for valuation, limiting cash flow conversion relative to revenue.
  • All $8.0 million of revenue comes from consulting, creating complete service-line concentration and reducing revenue diversification.
  • With only 4 partners and $2.0 million of revenue per partner, the practice appears partner-dependent, which can increase succession and key-person risk.
  • The firm has 20 staff against 30,000 billable hours, a scale profile that may constrain throughput and limit operating leverage visibility for buyers.
Opportunities
  • Increase revenue per partner by leveraging the current four-partner platform to take on additional work and improve partner productivity, given the existing $2.0 million of revenue per partner and 30,000 billable hours.
  • Expand the staff base and delegate more delivery work to improve operating leverage, as the firm already generates 50% EBOC on $8.0 million of gross revenue with 20 staff supporting the practice.
  • Preserve and deepen the consulting-only revenue mix by broadening higher-value advisory work within the current service model, since 100% of revenue is already derived from consulting.
  • Use the relatively young partner group, with a stated age of 32, to support a longer growth runway and build a larger leadership bench for future scale.
  • Increase billable-hour capacity through better utilization or additional capacity, since the current 30,000 billable hours indicate room to grow output from the existing platform.
Threats
  • All revenue is from consulting, so the firm lacks service-line diversification and is fully exposed to any slowdown in that single offering.
  • The firm generates $8.0 million of gross revenue with only 4 partners, which creates a relatively high reliance on a small leadership group and can make succession or continuity more difficult.
  • With 20 staff supporting 30,000 billable hours, the operating model appears lean, which may limit capacity to absorb turnover or support growth without adding headcount.
  • Revenue per partner of $2.0 million is strong, but it also means partner-level performance is critical to maintaining the current earnings base.
  • EBOC at 50% is healthy, but it still leaves meaningful margin sensitivity if staffing costs, utilization, or pricing soften.
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.