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Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$19.5M - $27M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $8.0 million of gross revenue, which indicates meaningful scale for a middle-market accounting practice.
  • Revenue per partner of $2.0 million suggests each partner is producing a substantial amount of firm revenue.
  • The firm has 30,000 total billable hours supported by 20 staff members, indicating a material operating capacity to service its client base.
  • An EBOC margin of 50% points to solid earnings conversion relative to revenue.
  • The firm’s partner group is evenly sized at four partners, which may support a balanced ownership structure from a transaction perspective.
Weaknesses
  • EBOC of 50% leaves only a modest earnings cushion on $8,000,000 of revenue, which can cap valuation versus higher-margin firms.
  • The practice is concentrated in just 4 partners, creating key-person and transition risk that buyers will discount.
  • All four partners are age 54, which points to a near-term succession need and makes value more dependent on an orderly ownership transition.
  • Revenue per partner is $2,000,000, indicating meaningful reliance on each partner’s production and limiting scalability if one partner exits or reduces effort.
  • With 20 staff supporting 4 partners, the 5:1 staff-to-partner structure may constrain leverage and succession flexibility relative to larger platforms.
Opportunities
  • The firm may have an opportunity to improve profitability through stronger pricing and realization, as EBOC is at 50% on $8.0 million of revenue.
  • With four partners each generating $2.0 million of revenue, the firm may be able to reduce key-person concentration by deepening management depth and delegating more client responsibility to senior staff.
  • At 30,000 billable hours with 20 staff, the firm may be able to increase operating leverage by improving staff utilization and expanding leverage beneath the partner group.
  • The identical partner ages of 54 suggest an opportunity to strengthen succession planning and transition leadership to support valuation stability.
  • Given the current scale of $8.0 million in revenue, the firm may have room to expand by cross-selling additional services to its existing client base without requiring a major increase in partner count.
Threats
  • All four partners are age 54, creating a concentrated succession and leadership transition risk if retirement timing is not well planned.
  • The firm’s revenue is highly concentrated at the partner level, with $2.0 million of revenue per partner, increasing key-person dependency and exposure to any partner departure or reduced capacity.
  • The firm has a relatively small staff base of 20 employees supporting 30,000 billable hours, which may limit scalability and increase operational strain if workload rises or turnover occurs.
  • An EBOC margin of 50% may indicate limited cushion for absorbing compensation pressure, recruiting costs, or other operating shocks.
  • With only four partners, the firm may have limited depth in ownership and management, which can constrain continuity and transition options.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

37.50% EBITDA margin
Operational Efficiency

You are doing a great job on leverage, continue to look for opportunities to push work down to the appropriate levels, and remember that leverage is your biggest pathway to high levels of profitability

Leverage ratio 5:1
Revenue Acceleration

Without a defined growth rate, growth may be accelerated by adding advisory services, pursuing tuck-in mergers, or onboarding a lateral partner with an existing book of business.

+15–25% revenue growth
Risk Mitigation

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

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This preliminary valuation range is for discussion purposes only, based on unverified information, and is highly sensitive to assumptions. It does not constitute a formal valuation or transaction guidance and should not be relied upon by any party for decision-making purposes.