- The firm generates $8.0 million of gross revenue, providing meaningful scale for a buyer to underwrite.
- All revenue is consulting revenue at 100%, which indicates a fully consulting-based business mix.
- EBOC is 50%, showing that half of gross revenue converts to earnings before owner compensation and taxes.
- Revenue per partner is $2.0 million, which is a high productivity level on a per-partner basis.
- The firm produces 30,000 billable hours, evidencing substantial service capacity and utilization.
- The partner group is relatively young at age 32, which may support continuity in the ownership base.
- EBOC of 50% indicates only moderate earnings conversion, limiting cash flow support for a premium valuation.
- The firm is 100% consulting revenue, creating full service-line concentration and no recurring or diversified practice mix to offset cyclical risk.
- With only 4 partners, the practice is highly dependent on a small leadership base, which can constrain scalability and buyer confidence in continuity.
- Revenue per partner of $2,000,000 suggests the platform is concentrated in a few producers, increasing succession and retention sensitivity for a buyer.
- Maintain and expand the high-margin profile, as EBOC is 50% on $8.0M of gross revenue, which supports strong valuation quality if sustained.
- Increase revenue per partner, which is already $2.0M, by leveraging the 20-person staff base to take on more billable work without adding partner count at the same pace.
- Scale billable capacity beyond the current 30,000 billable hours by improving utilization and/or adding capacity, creating room for revenue growth from the existing consulting-only model.
- Preserve and deepen the 100% consulting revenue mix, as the current pure-service profile simplifies the business and can support a premium valuation when combined with strong margins.
- Build succession depth around the four partners, whose age is listed as 32, to reduce key-person concentration and support continuity as the firm grows.
- At $8.0M of gross revenue across 4 partners, revenue per partner is $2.0M, which can indicate meaningful key-person dependence and valuation sensitivity if any partner reduces involvement.
- The firm has only 20 staff supporting 30,000 billable hours, suggesting a relatively lean operating model that may strain delivery capacity and scalability as demand grows.
- With consulting revenue at 100% of gross revenue, the practice is fully concentrated in a single service line, reducing diversification and increasing earnings volatility if that line softens.
- EBOC at 50% is solid, but it also implies half of revenue is consumed by operating costs, leaving limited room for margin compression without affecting earnings materially.