- The firm generates $4.0 million of gross revenue with 100% of revenue from consulting, giving a buyer a fully services-based revenue profile.
- EBOC is 50%, indicating that half of gross revenue remains after expenses before owner compensation and taxes.
- The practice produces 30,000 billable hours, which provides clear evidence of meaningful operating scale.
- The firm has 4 partners and 20 staff, showing a multi-partner structure with a substantial support base.
- Revenue per partner is $1.0 million, which is a useful productivity metric for valuation analysis.
- The practice reports 32 specialized niches, indicating a broad set of defined service areas within the firm.
- Gross revenue of $4,000,000 and revenue per partner of $1,000,000 indicate a relatively small platform, which can constrain scale and valuation multiple expansion.
- EBOC of 50% suggests only moderate earnings conversion from revenue, limiting profitability leverage for a buyer.
- Consulting revenue is 100%, so the firm is entirely reliant on one service line rather than a diversified mix.
- The firm lists 32 specialized niches, which may indicate a highly fragmented service mix that can dilute focus and reduce operating efficiency.
- With 4 partners against 20 staff, the firm appears partner-heavy, which can increase key-person reliance and limit scalability.
- Expand revenue per partner from the current $1.0 million level by increasing billable volume and/or pricing, supported by 30,000 billable hours and 50% EBOC margin.
- Leverage the 100% consulting revenue mix to deepen higher-value advisory work and reduce dependence on any single service line, which can support valuation through a more differentiated mix.
- Monetize the 32 specialized niches by concentrating on the most scalable offerings and cross-selling adjacent services, using specialization to support premium pricing and growth.
- Improve operating leverage by adding capacity beyond the current 20 staff and 4 partners, which could allow the firm to convert existing demand into more revenue without proportionate partner expansion.
- Build on the relatively young partner group with a 32-year average age to support a longer growth runway and succession continuity, which can enhance buyer confidence and valuation.
- At $4.0M of gross revenue with only 4 partners, the firm’s $1.0M revenue per partner suggests meaningful key-person dependence and limited depth at the ownership level.
- The staffing base of 20 against 30,000 billable hours implies roughly 1,500 billable hours per staff member, which may constrain capacity, flexibility, and scalability if demand increases or turnover occurs.
- With consulting revenue at 100% of total revenue, the firm is fully exposed to a single service line, reducing diversification of earnings streams.
- An EBOC margin of 50% is solid but leaves limited cushion if utilization, pricing, or staffing efficiency weakens, which can pressure valuation support.
- The presence of 32 specialized niches suggests a broad service mix that may dilute focus and make operational execution more complex relative to the firm’s size.