Paul Testing
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • $8.0M of gross revenue provides meaningful scale for a buyer evaluating the platform.
  • Revenue per partner of $2.0M indicates strong partner productivity relative to the firm’s current ownership base.
  • 30,000 billable hours suggest a substantial annual workload and an established operating volume.
  • EBOC margin of 50% indicates that half of gross revenue remains after operating costs, supporting attractive earnings quality.
  • The firm has 4 partners and 20 staff, showing a defined partner-led structure with supporting personnel in place.
Weaknesses
  • EBOC of 50% indicates mid-level profitability, which can cap valuation versus higher-margin firms with stronger earnings conversion.
  • Revenue per partner is $2,000,000 across only 4 partners, creating meaningful key-person exposure because a small partner base can be harder to replace or scale after a transaction.
  • With 20 staff supporting $8,000,000 of revenue, the firm’s operating scale is modest and may limit immediate leverage on overhead absorption and integration synergies for a buyer.
Opportunities
  • With only 4 partners and $8.0M of gross revenue, there is an opportunity to improve scale and valuation by growing the platform while maintaining the current 50% EBOC margin.
  • Revenue per partner of $2.0M suggests room to increase partner leverage by expanding staff capacity relative to the partner base.
  • The firm’s 30,000 billable hours indicate an opportunity to increase throughput and revenue by improving utilization and converting available capacity into additional billable work.
  • The relatively young partner age profile of 30 may support a longer runway for continuity and growth, which can enhance buyer confidence and valuation stability.
  • With no practice mix data provided, a clear opportunity is to build and document service-line concentration and recurring revenue characteristics to strengthen the valuation story.
Threats
  • At $8.0M of gross revenue with only 4 partners, the firm is highly dependent on a small leadership group, which can create succession and continuity risk if one or more partners reduce involvement.
  • Revenue per partner of $2.0M is relatively high versus the current partner count, suggesting meaningful operating leverage and potential earnings pressure if partner productivity softens.
  • With 20 staff supporting 30,000 billable hours, the firm appears leanly staffed, which may limit capacity to absorb growth, turnover, or utilization volatility without service strain.
  • The reported EBOC margin of 50% is strong, but it also implies valuation sensitivity to any normalization in compensation, overhead, or realization assumptions.
  • The partner age field shows 30, which provides limited evidence of near-term retirement risk, but it also means the data set does not indicate a mature succession pipeline to offset the small partner base.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

37.50% EBITDA margin
Operational Efficiency

You are doing a great job on leverage, continue to look for opportunities to push work down to the appropriate levels, and remember that leverage is your biggest pathway to high levels of profitability

Leverage ratio 5:1
Revenue Acceleration

Without a defined growth rate, growth may be accelerated by adding advisory services, pursuing tuck-in mergers, or onboarding a lateral partner with an existing book of business.

+15–25% revenue growth
Risk Mitigation

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

[0, 0]

This preliminary valuation range is for discussion purposes only, based on unverified information, and is highly sensitive to assumptions. It does not constitute a formal valuation or transaction guidance and should not be relied upon by any party for decision-making purposes.