- The firm generates $8.0 million of gross revenue, which is a meaningful scale point for a buyer evaluating transaction size and integration potential.
- With 30,000 billable hours, the practice shows substantial annual production capacity that can support recurring revenue generation.
- An EBOC margin of 50% indicates that half of gross revenue remains after employee-related costs, which is a material profitability indicator for valuation.
- The firm has 4 partners and 20 staff, giving a compact operating structure that may be easier to transition and integrate in an acquisition.
- Revenue per partner is $2.0 million, which is a useful productivity metric from a buyer’s perspective.
- EBOC is only 50%, indicating relatively modest margin conversion and limiting valuation support versus higher-earning firms.
- With just 4 partners generating $8,000,000 of revenue, the firm produces $2,000,000 of revenue per partner, which may indicate key-person dependence at the partner level.
- The firm has only 20 staff against 30,000 billable hours, suggesting a relatively lean operating base that may constrain scalability without additional hiring.
- All partners are age 32, which creates a clear succession and retention risk because there is no visible age diversity in the partner group.
- Increase revenue per partner from $2.0M by expanding partner-led origination and cross-selling capacity across the 4-partner platform.
- Improve operating leverage by adding and developing staff beneath the partners, as 20 staff support 30,000 billable hours and may allow more partner time to focus on higher-value work.
- Preserve and potentially enhance the 50% EBOC margin through tighter utilization and pricing discipline, which would directly support valuation.
- Build scale from the current $8.0M revenue base by growing billable hours and workload without a proportional increase in partner count, improving earnings concentration and enterprise value.
- Use the relatively young partner group (age 32) to support a longer growth runway and succession continuity, which can strengthen buyer confidence in future earnings durability.
- At $8.0M of gross revenue with only 4 partners, the firm’s $2.0M revenue per partner suggests meaningful key-person dependency and potential valuation sensitivity if partner productivity changes.
- With 20 staff supporting 30,000 billable hours, the staffing base is relatively lean, which may constrain capacity, increase execution risk, and make it harder to absorb turnover or growth without disruption.
- An EBOC margin of 50% is solid but still leaves limited room for operational slippage, so modest pressure on realization, utilization, or compensation could materially affect earnings.
- The partner age data is recorded as 32, which may indicate a younger partner group and therefore a shorter near-term continuity risk profile if succession depth is not well developed.