- The firm generates $8.0 million of gross revenue, which provides meaningful scale for a four-partner practice.
- Revenue is diversified across service lines, with audit, tax, and consulting each representing 12% of revenue, reducing reliance on any single niche.
- The firm produces 30,000 billable hours, indicating substantial operating volume to support the revenue base.
- EBOC is 50%, suggesting a strong earnings conversion profile from the reported financials.
- Revenue per partner is $2.0 million, reflecting a high level of partner productivity relative to the firm’s size.
- EBOC is 50%, indicating only moderate profitability and leaving limited margin for a buyer to underwrite a premium valuation.
- The firm has only 4 partners, so enterprise value is more exposed to partner dependence and succession risk, especially with one partner at age 24 and the remaining partners at 58, 54, and 52.
- Revenue per partner is $2,000,000, which can signal a relatively concentrated production base and makes the business more sensitive to the loss of any one partner.
- Audit, tax, and consulting each represent only 12% of revenue, which suggests a fragmented service mix without a dominant higher-scale line to anchor valuation multiple expansion.
- With 20 staff supporting $8,000,000 of revenue, the firm’s scale is modest, which can limit operating leverage and buyer interest relative to larger platforms.
- Increase the audit and tax mix, as both are only 12% of revenue, to reduce reliance on the current non-core revenue base and improve recurring, higher-value service penetration.
- Expand consulting from its current 12% share by cross-selling into the existing client base, which could lift average revenue per client and support higher valuation multiples if executed with the current partner team.
- Improve leverage by building out the 20-person staff base around four partners, as the current revenue per partner of $2.0 million suggests room to scale partner capacity through delegation and supervision.
- Address succession and continuity risk given the partner age profile of 58, 54, and 52 alongside one younger partner, since a broader leadership bench can support smoother growth and preserve value.
- Increase billable output from the current 30,000 billable hours by tightening utilization and capacity management, which could raise revenue without requiring immediate partner expansion.
- Revenue is concentrated in a single dominant service mix, with audit, tax, and consulting each at 12% of gross revenue, leaving the remaining 64% unspecified and potentially less transparent for valuation diligence.
- The partner age profile includes one partner at 24 alongside three partners aged 52, 54, and 58, creating succession and continuity risk if the senior partners approach transition or retirement.
- With 4 partners and 20 staff supporting $8.0 million of gross revenue, the firm’s operating model may be relatively partner-heavy, which can pressure scalability and key-person dependence.
- Revenue per partner of $2.0 million is strong, but it also indicates meaningful reliance on each partner’s individual production, which can increase earnings volatility if any partner underperforms or exits.
- EBOC at 50% suggests moderate profitability, but it still leaves limited cushion versus revenue fluctuations or staffing inefficiencies in a small firm structure.