- The firm generates $8.0 million of gross revenue, which is a meaningful scale for a buyer to underwrite.
- EBOC is 50%, indicating that half of gross revenue remains after operating expenses before partner compensation and taxes.
- Revenue per partner is $2.67 million across 3 partners, which supports a concentrated ownership structure with substantial revenue tied to each partner.
- The firm reports 30,000 billable hours, providing evidence of significant annual production capacity.
- The partner group is relatively young, with ages of 34, 45, and 45, which may support continuity in the ownership base.
- EBOC at 50% indicates only moderate profitability, which can pressure valuation versus more highly converted firms.
- Revenue per partner of $2,666,667 across only 3 partners suggests key-person concentration and limited management depth for a buyer to inherit.
- With 30 staff and 30,000 total billable hours, the firm’s scale is modest, which can limit post-close operating leverage and integration optionality.
- Audit revenue is only 3%, tax revenue 4%, and consulting revenue 4%, showing a very small disclosed service mix outside the core business and limited evidence of diversified fee streams.
- Expand the non-compliance service mix, as audit revenue is only 3% and tax and consulting are each 4%, indicating limited exposure to higher-value advisory work.
- Increase revenue per partner, which is currently about $2.67 million, by leveraging the 30-person staff base more fully across the three-partner platform.
- Improve operating leverage and margin conversion from the current 50% EBOC margin by adding higher-margin work or tightening delivery efficiency.
- Build scale through the existing 30-staff, 3-partner structure, which may support additional throughput without immediate partner count growth.
- Broaden recurring client relationships beyond the current low audit and tax mix to reduce concentration in core compliance and support valuation multiple expansion.
- The firm’s revenue mix is highly concentrated in a single unspecified core service, with audit, tax, and consulting each contributing only 3%–4% of gross revenue, which limits diversification and may increase earnings volatility if the main line softens.
- With only 3 partners and 30 staff, the practice has a relatively small leadership base and limited depth, creating key-person and succession risk if one partner becomes unavailable or departs.
- Revenue per partner of approximately $2.67 million is strong, but it also suggests meaningful dependence on each partner’s production, which can pressure continuity and valuation if partner throughput changes.
- EBOC at 50% is solid, but it leaves limited room for operational disruption or margin compression, so even modest cost increases or utilization declines could materially affect profitability.