- The firm generates $8.0 million of gross revenue, indicating meaningful scale for a mid-market accounting practice.
- Revenue per partner is $2.0 million, which supports strong partner productivity relative to the firm’s size.
- The firm produces 30,000 billable hours with 20 staff, suggesting a substantial operating platform supporting current revenue levels.
- An EBOC margin of 50% indicates solid earnings conversion before owner compensation and interest.
- All four partners are age 32, which suggests a young partner group and potentially a long remaining ownership horizon.
- The firm has only four partners, which creates a relatively concentrated leadership base and may increase key-person and governance risk in a transaction.
- Revenue is concentrated at the partner level at $2.0 million per partner, which can indicate dependency on a small number of client rainmakers and limit transitionability.
- The staff-to-partner ratio is 5:1 with 20 staff supporting 4 partners, which may suggest limited management depth and potential scalability constraints.
- At 50% EBOC, the firm’s profitability is moderate rather than exceptional, which may temper valuation relative to higher-margin firms.
- The firm has strong partner-level productivity at $2.0 million of revenue per partner, suggesting opportunity to support growth by scaling the existing partner model with added staff capacity or future partner hires.
- With 30,000 billable hours and 20 staff, there is room to improve operational leverage by increasing staff utilization and expanding billable output without requiring proportional partner growth.
- An EBOC of 50% indicates meaningful room to improve profitability through margin enhancement, pricing discipline, and tighter expense control.
- All four partners are age 32, which supports a long runway for succession planning and long-term continuity, potentially strengthening valuation by reducing near-term leadership transition risk.
- With only 4 partners, the firm may face key-person and succession risk if one or more partners depart or become unavailable, given the concentration of leadership and revenue responsibility.
- An EBOC margin of 50% suggests moderate profitability, which may limit the firm's ability to absorb compensation pressure, overhead increases, or market shocks.
- Revenue per partner of $2,000,000 indicates relatively high dependence on each partner's production, increasing operational risk if partner productivity declines.
- The staffing base of 20 staff versus 4 partners may create execution and retention risk if the firm cannot adequately support partner-led work capacity as demand grows.