- The firm generates $8.0 million of gross revenue, which supports a meaningful scale for a two-partner accounting practice.
- Revenue per partner is $4.0 million, indicating high partner productivity relative to the current partner count.
- The firm produces 30,000 total billable hours, suggesting a substantial recurring service base behind the reported revenue.
- An EBOC margin of 50% indicates solid operating profitability on the available data.
- The firm has 20 staff supporting two partners, providing a leverage profile that can help sustain delivery capacity.
- EBOC of 50% indicates only moderate operating profitability, which can limit valuation multiple expansion versus higher-margin firms.
- The firm’s two-partner structure creates key-person and succession risk, with both partners aged 54 and no additional partner bench shown in the data.
- Revenue is concentrated in just 2 partners at $4.0 million per partner, which increases buyer dependence on a very small leadership group.
- At $8.0 million of gross revenue and 20 staff, the firm remains relatively small in scale, which can constrain operating leverage and reduce platform attractiveness to larger buyers.
- With only two partners and $4.0 million of revenue per partner, the firm may have room to reduce key-person concentration by developing additional leadership depth.
- At 50% EBOC, there may be an opportunity to improve operating leverage through tighter expense management and better utilization of the existing 20-person staff.
- Given 30,000 billable hours on $8.0 million of revenue, the firm may be able to enhance realization by selectively improving billing rates or mix of services if supported by market demand.
- Both partners are age 54, so succession planning and transition of client relationships may create value by improving continuity and reducing future ownership risk.
- The firm has significant partner succession risk because both partners are age 54 and there are only two partners supporting the practice.
- High revenue concentration at the partner level, with $4,000,000 of revenue per partner, may create key-person dependency and transition risk if either partner departs.
- An EBOC margin of 50% suggests limited operating cushion, which could pressure valuation if staffing costs or other expenses increase.
- With only 20 staff supporting $8,000,000 of revenue, the firm may have limited depth and redundancy, increasing operational and retention risk.