Orange Firm
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
43.75%
EBITDA Margin
$21M - $28M
Valuation Range
87.50%
Economic Profit%
2
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
30
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 is a material revenue base for a two-partner practice.
  • Revenue per partner is $4.0 million, indicating a high level of revenue concentration per equity owner.
  • The practice produces 30,000 billable hours, showing meaningful operating scale in the underlying service engine.
  • EBOC is 50%, which provides a clear profitability metric for valuation analysis.
  • The firm has 30 staff supporting 2 partners, suggesting substantial leverage in the staffing model.
  • Both partners are age 61, which may create a defined succession or transition event for a buyer to evaluate.
Weaknesses
  • EBOC is 50%, which leaves only half of revenue after employee and operating costs and may limit valuation leverage versus higher-margin firms.
  • The firm’s scale is concentrated in just 2 partners, creating significant key-person and succession risk for a buyer if either partner exits.
  • Both partners are age 61, which heightens near-term transition risk and makes post-close retention and succession planning valuation-relevant.
  • Revenue per partner is $4,000,000, indicating a highly concentrated partner structure that increases dependence on a very small leadership base.
Opportunities
  • Strengthen succession and transition planning for the two 61-year-old partners to reduce key-person risk and support valuation continuity.
  • Expand leverage by developing the 30-person staff base to support more billable hours and reduce dependence on partner labor, given only 2 partners and $8.0M of revenue.
  • Improve partner scalability and revenue per partner by delegating lower-value work to staff, as the current revenue per partner of $4.0M indicates significant concentration at the partner level.
Threats
  • Both partners are age 61, creating near-term succession and continuity risk because ownership and leadership are concentrated in two individuals.
  • The firm’s revenue is concentrated at the partner level, with $4.0 million of revenue per partner and only 2 partners supporting $8.0 million of gross revenue, which can make transition and retention more sensitive to partner departure.
  • Staffing leverage appears modest at 30 staff against 2 partners, so any disruption at the partner level could materially affect client service capacity and execution.
  • EBOC is 50%, which is solid but leaves limited cushion if transition costs, compensation pressure, or staffing inefficiencies increase during a succession period.
Enhance Profitability

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

43.75% 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 15:1
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.
Reducing average partner age below 60 or having a clear succession plan can add 0.5-1.0x to your multiple, increasing value by 15-25%.

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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.