- The firm generates $8.0 million of gross revenue, providing a meaningful revenue base for a buyer to underwrite.
- With 30,000 billable hours, the practice shows substantial production volume that can support continuity of earnings.
- EBOC is 50%, indicating that half of gross revenue remains after operating expenses before partner compensation and other items.
- The firm has 4 partners, which may reduce dependence on any single owner relative to a one-partner practice.
- Revenue per partner is $2.0 million, which is a material productivity level on a per-owner basis.
- EBOC is 50%, which leaves only half of gross revenue available after owner compensation and can constrain valuation multiple support.
- The firm generates $2.0 million of revenue per partner across only 4 partners, indicating a relatively high dependency on a small ownership group for the current revenue base.
- Increase revenue per partner by leveraging the current 4-partner platform, as revenue per partner is $2.0 million on $8.0 million of gross revenue.
- Expand capacity utilization by increasing billable hours from the current 30,000 level, which would support top-line growth without requiring immediate partner expansion.
- Improve operating leverage by scaling the 20-person staff base against the existing partner group, given the current 50% EBOC margin indicates room to convert additional revenue into earnings.
- Preserve and extend continuity value through succession planning, as all four partners are the same age profile and the firm’s value is concentrated in a small partner group.
- The firm’s 50% EBOC margin may be vulnerable if compensation, overhead, or utilization soften, as the current profitability level is a key support for valuation.
- With 30,000 billable hours against 20 staff and 4 partners, the practice appears relatively lean, which may limit capacity to absorb turnover, growth, or workflow disruption without adding cost.
- Revenue of $8.0 million spread across 4 partners implies $2.0 million per partner, so any partner departure or reduced involvement could have an outsized impact on earnings and continuity.
- All four partners are listed at age 20, which suggests an unusually young ownership profile and may indicate limited operating tenure or succession depth, increasing execution risk for a buyer.