- The firm generates $8.0 million of gross revenue with 100% of revenue from consulting, giving a buyer a fully services-based revenue stream to underwrite.
- EBOC is 50%, which indicates a substantial share of revenue remains after operating expenses and supports valuation on current earnings power.
- Revenue per partner is $8.0 million, reflecting very high revenue concentration at the partner level given there is only one partner.
- The practice reports 30,000 billable hours, providing a clear volume base that supports the current revenue level.
- The ownership structure is simple, with one partner and one staff member, which may make transaction execution and transition mechanics more straightforward.
- The firm has severe key-person risk and succession exposure because all $8,000,000 of revenue is concentrated with a single 78-year-old partner.
- Operating leverage is extremely limited with only 1 partner and 1 staff member, which can constrain scalability and make the business difficult to support or transition.
- The practice is entirely consulting-based at 100% of revenue, creating full service-line concentration with no diversification across recurring compliance or other service streams.
- EBOC of 50% indicates a modest earnings profile relative to revenue, which can cap valuation versus higher-margin firms.
- Revenue per partner is $8,000,000, underscoring complete partner concentration and heightened transferability risk for a buyer.
- Reduce key-person risk by building a broader ownership and delivery bench, as the firm currently has 1 partner and 1 staff member with all revenue concentrated under a single partner.
- Monetize the strong profitability profile by preserving the 50% EBOC margin while scaling the practice, since the current economics suggest room to add capacity without sacrificing returns.
- Expand capacity and throughput to support growth, as 30,000 billable hours and $8.0 million of gross revenue indicate a meaningful workload that is currently concentrated in a very small team.
- Improve succession readiness and valuation durability by addressing the partner age profile of 78, which creates a near-term transition opportunity and potential buyer concern if not managed proactively.
- The firm is highly key-person dependent, with 100% of revenue tied to a single partner age 78 and only 1 partner, creating significant succession and continuity risk.
- The staffing base is extremely thin at 1 staff member against 30,000 billable hours, which increases execution risk, limits scalability, and makes service delivery vulnerable to any personnel disruption.
- Revenue concentration at the ownership level is elevated, with $8.0 million of gross revenue and $8.0 million of revenue per partner, indicating no diversification across partners to absorb transition or productivity changes.
- The practice is entirely consulting-based (100% consulting revenue), so valuation is more exposed to the sustainability of a single service line than a diversified accounting firm mix.
- While EBOC is strong at 50%, the margin may be difficult to sustain if the firm must add personnel or replace partner capacity, given the current minimal staffing structure.