- The firm generates $8.0 million of gross revenue, which is material in size for a buyer evaluating scale.
- With 30 staff supporting 2 partners, the firm shows meaningful leverage and a 15:1 staff-to-partner ratio.
- The practice produces 30,000 billable hours, indicating a substantial volume of fee-earning work.
- Revenue per partner is $4.0 million, which is a strong per-partner productivity metric from a valuation perspective.
- EBOC is 50%, providing a clear profitability indicator for buyer underwriting.
- EBOC of 50% indicates only moderate profitability, which can cap valuation relative to higher-margin firms.
- The firm is highly partner-dependent with just 2 partners generating $4,000,000 of revenue per partner, creating key-person and succession risk.
- Both partners are 59, so the firm faces near-term transition risk if there is no clear succession plan.
- Revenue of $8,000,000 supported by 30 staff suggests a relatively small operating platform that may limit scale and operating leverage.
- Total billable hours of 30,000 on $8,000,000 of revenue implies average revenue per billable hour of about $267, which may constrain upside if realized pricing is already at maturity.
- Increase partner succession depth and reduce key-person risk, as both partners are age 59 and the firm currently has only two partners.
- Expand leverage by developing the 30-person staff base to support more billable hours and reduce dependence on partner labor, given $8.0 million of revenue and 30,000 billable hours.
- Improve revenue per hour and overall pricing realization to lift value, as the firm generates $8.0 million of gross revenue from 30,000 billable hours.
- Preserve and potentially enhance the strong 50% EBOC margin by maintaining disciplined cost control while scaling the existing staffing model.
- Build a broader partner bench to support continuity and future growth, since revenue per partner is already $4.0 million and the current partner group is small.
- Both partners are age 59, creating a 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 increases key-person dependency.
- Staffing may be tight relative to scale, with 30 staff supporting 30,000 billable hours and $8.0 million of revenue, which can limit capacity and increase execution risk if workload rises.
- EBOC margin is 50%, which is solid but leaves less room for valuation protection if operating costs rise or productivity weakens.
- The absence of practice-level detail in the provided data makes it harder to assess mix stability and operational diversification, increasing diligence uncertainty.