- The firm generates $750,000 of gross revenue, providing a clear revenue base for valuation analysis.
- Tax work accounts for 90% of revenue, indicating a highly concentrated and clearly defined service mix.
- EBOC is 67% of revenue, which supports a strong earnings conversion profile on the reported financials.
- The practice produces 5,500 billable hours, showing measurable operating activity behind the revenue base.
- With 2 partners and 3 staff, the firm has a compact operating structure that is easy to quantify in a transaction model.
- Revenue per partner is $375,000, giving buyers a straightforward per-owner productivity metric.
- EBOC is only 67%, which indicates a relatively modest earnings margin for a $750,000 practice and limits valuation support.
- The firm is highly concentrated in tax work, with 90% of revenue from tax and only 10% from consulting, reducing service-line diversification.
- The practice has just 2 partners and 3 staff, creating a small-scale operating platform that can constrain buyer confidence in continuity and growth capacity.
- Revenue per partner is only $375,000, which is a modest productivity level for a two-partner firm and can pressure valuation.
- Total billable hours of 5,500 on $750,000 of revenue suggest a relatively small production base, which may limit scale and resilience.
- Increase the consulting mix from 10% to improve revenue diversification and potentially enhance margins relative to the predominantly tax-driven book.
- Leverage the very high tax revenue concentration at 90% to cross-sell adjacent advisory services and reduce dependence on a single service line.
- Build scale by adding staff capacity to support the 5,500 billable hours and reduce key-person reliance in a 2-partner, 3-staff firm.
- Improve partner leverage by delegating more production work to staff, which could support higher revenue per partner than the current $375,000 level.
- Preserve and expand the strong 67% EBOC by maintaining disciplined pricing and workload mix as the firm grows.
- The firm’s scale is very small, with only 2 partners and 3 staff supporting $750,000 of gross revenue, which can create key-person and execution risk for a buyer.
- Revenue appears highly concentrated in tax work at 90% of gross revenue, leaving limited diversification across service lines and increasing dependence on a single practice area.
- Revenue per partner is only $375,000, which may indicate limited operating leverage and could constrain valuation relative to larger, more productive firms.
- Billable hours of 5,500 across the firm suggest a modest workload base, which may limit near-term growth capacity and make earnings more sensitive to staffing or utilization changes.
- Consulting contributes only 10% of revenue, so the firm has relatively little non-tax advisory mix to offset weakness in its core tax practice.