Test Orange
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
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 provides meaningful scale for a buyer to underwrite.
  • With 30,000 billable hours, the practice shows substantial production capacity and operating volume.
  • The firm reports an EBOC margin of 50%, indicating a high level of earnings conversion relative to revenue.
  • Revenue per partner is $2.0 million across 4 partners, which supports a concentrated and measurable partner productivity profile.
  • The partner group is listed at age 32 for all 4 partners, indicating a uniformly young partner cohort from a succession-planning perspective.
Weaknesses
  • EBOC of 50% indicates only moderate profitability, which can cap valuation multiple expansion relative to higher-margin practices.
  • Revenue per partner of $2,000,000 may indicate meaningful partner concentration, increasing key-person dependency at the ownership level.
  • With 4 partners supported by only 20 staff, the firm has a relatively thin management and delivery bench that can constrain scalability and post-close integration.
  • All four partners are age 32, which suggests a young partner group with limited succession diversification and less immediate depth of senior leadership experience.
Opportunities
  • Increase partner leverage by expanding the 20-person staff base relative to 4 partners, which could support higher billable-hour capacity and revenue without proportional partner time.
  • Improve monetization of the existing 30,000 billable hours by raising realized rates or tightening pricing discipline, as current revenue of $8.0 million implies room to enhance revenue per hour.
  • Preserve and scale the strong 50% EBOC margin by maintaining operating discipline as the firm grows, which would support valuation through durable profitability.
  • Build on the current $2.0 million revenue per partner by adding capacity and delegation beneath the partner group, improving scalability and reducing concentration on the four partners.
  • Use the relatively young partner group at age 32 to support a longer growth runway, which can enhance continuity and make multi-year expansion more feasible.
Threats
  • EBOC margin of 50% on $8.0M of gross revenue may indicate limited operating cushion if costs rise or billable utilization softens.
  • With only 20 staff supporting 4 partners and 30,000 billable hours, the firm may have limited depth to absorb workload spikes, turnover, or partner absence.
  • Revenue per partner of $2.0M suggests the business is highly dependent on a small partner group, which can increase key-person risk in a four-partner structure.
  • All four partners are age 32, so the firm appears to have a very young ownership base and limited near-term succession depth if growth or retention falters.
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.