- The firm generates $8.0 million of gross revenue, which is a meaningful scale for a buyer evaluating transaction size and integration impact.
- EBOC is 50%, indicating that half of gross revenue remains after operating expenses before partner compensation and other owner-level items.
- The practice produces 30,000 billable hours, providing a substantial volume of recurring work to support revenue continuity.
- With 4 partners and 20 staff, the firm has a 24-person operating base that can support service delivery and transition planning.
- Revenue per partner is $2.0 million, which is a high productivity metric on the provided data set.
- The firm’s EBOC of 50% suggests only moderate profitability, which can constrain valuation relative to higher-margin peers.
- Partner succession risk is elevated because the four partners are ages 56, 56, 84, and 93, creating clear continuity risk for a buyer.
- The business appears highly partner-dependent, with only 4 partners generating $8,000,000 of revenue and $2,000,000 per partner, which increases key-person exposure and transition risk.
- The staffing base is relatively small at 20 staff supporting 30,000 billable hours, which may limit operating scale and make it harder to absorb growth or partner transitions without disruption.
- Strengthen succession and continuity planning given the partner age profile of 56, 84, 93, and 56, which creates key-person and transition risk that can affect valuation.
- Improve leverage and scalability by increasing non-partner staffing relative to 4 partners and 20 staff, supporting more partner time on higher-value work and reducing concentration risk.
- Expand billable capacity and revenue per partner from the current 30,000 billable hours and $2.0 million revenue per partner, indicating room to increase throughput and monetization.
- Preserve and potentially enhance the 50% EBOC margin by maintaining disciplined pricing and cost control, which would directly support valuation quality.
- The partner group appears succession-sensitive, with two partners aged 84 and 93 and all four partners at 56+; this creates a material continuity and transition risk for a buyer.
- Staffing depth is modest relative to scale, with 20 staff supporting $8.0 million of gross revenue and 30,000 billable hours, which may constrain operating leverage and increase key-person dependency.
- Revenue per partner is high at $2.0 million, suggesting the business may be heavily reliant on a small ownership group for production and client relationships, increasing integration and retention risk in a transaction.
- The reported EBOC margin of 50% is strong, but it also implies valuation sensitivity if partner compensation, staffing costs, or workflow efficiency change post-close.
- With only four partners, any departure or reduced involvement by one or more owners could have an outsized impact on management capacity and near-term earnings stability.