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Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
43.75%
EBITDA Margin
$22.8M - $31.5M
Valuation Range
87.50%
Economic Profit%
2
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 is a meaningful top-line base for valuation analysis.
  • With 30,000 billable hours, the practice demonstrates substantial annual production capacity supported by measurable utilization.
  • EBOC is 50%, indicating that half of gross revenue remains after operating expenses and providing a clear profitability metric for buyers.
  • The firm has only 2 partners, and the derived revenue per partner is $4.0 million, which concentrates revenue productivity at the partner level.
  • The partner group is age 59 for both partners, which may be material in a transaction context because it indicates a near-term succession horizon.
Weaknesses
  • Two-partner ownership at ages 59 and 59 creates near-term succession and transition risk, which can pressure valuation if continuity is not clearly managed.
  • Revenue is highly concentrated at the partner level with $4.0 million per partner on $8.0 million of gross revenue, indicating significant key-person dependence.
  • The firm’s 20 staff supporting $8.0 million of revenue suggests a relatively small operating platform that may constrain scalability and increase execution risk for a buyer.
  • At 30,000 total billable hours on $8.0 million of revenue, the practice generates about $267 of revenue per billable hour, which may limit margin expansion opportunities if pricing or efficiency cannot be improved.
Opportunities
  • Improve partner succession and transition planning, as both partners are age 59, to reduce key-person risk and support valuation continuity.
  • Increase leverage by expanding staff capacity relative to the two partners and 20 staff, which could allow more billable hours and revenue growth without proportional partner dependence.
  • Scale billable hours above the current 30,000 level to better absorb fixed overhead and improve earnings quality.
  • Preserve and potentially expand the 50% EBOC margin through disciplined pricing and utilization management, as margin stability is a direct valuation support.
  • Build a broader revenue base beyond the current $8.0 million gross revenue to reduce concentration in a small leadership team and improve marketability.
Threats
  • The firm’s two partners are both age 59, creating near-term succession and continuity risk if transition planning is not already in place.
  • Revenue is concentrated at the partner level, with $4.0 million of revenue per partner on only two partners, increasing key-person dependency and making earnings retention more sensitive to partner availability.
  • The staffing base of 20 employees against $8.0 million of gross revenue implies a lean operating structure that may limit capacity to absorb turnover, growth, or workflow disruption.
  • Billable hours of 30,000 across the firm suggest a meaningful reliance on sustained utilization, so any decline in billable demand or productivity could pressure performance.
  • While EBOC is strong at 50%, the valuation remains exposed to maintaining that margin, and any increase in compensation or overhead would have an outsized effect on earnings quality.
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 10:1
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.
Proactive succession planning can prevent future multiple reductions and maintain firm value.

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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.