50000
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$5,000,000
Annual Gross Revenue
45%
EBITDA Margin
$12.4M - $18M
Valuation Range
90%
Economic Profit%
1
No. of Equity Partners
$167/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $5.0M of gross revenue with only one partner, indicating a highly concentrated revenue base at the partner level and a large revenue-per-partner figure of $5.0M.
  • The practice produces 30,000 billable hours, which supports a meaningful operating scale for a single-partner firm.
  • EBOC is 50% of revenue, showing that half of gross revenue remains after operating expenses before partner compensation and other items.
  • The firm has 20 staff, providing a substantial labor base relative to its one-partner structure.
  • The partner age is 32, which may support a longer remaining working horizon than a later-stage partner profile.
Weaknesses
  • The firm is highly key-person dependent, with all $5,000,000 of revenue and 100% of the partner base tied to a single partner, creating significant buyer succession and retention risk.
  • EBOC of 50% indicates only half of revenue is converting to earnings before owner compensation, which limits profitability leverage and supports a lower valuation multiple relative to stronger-margin firms.
  • At $5,000,000 in revenue with 20 staff and only one partner, the firm’s scale is concentrated around a very small ownership structure, which can constrain continuity and transition certainty for a buyer.
Opportunities
  • With only one partner and $5.0M of revenue, there is a clear opportunity to reduce key-person risk and improve transferability by building a broader leadership bench and succession depth.
  • The firm’s 50% EBOC margin suggests room to improve profitability through tighter utilization, pricing discipline, and leverage of the 20-person staff base.
  • At 30,000 billable hours on $5.0M of revenue, the firm may be able to increase revenue per hour by refining service mix and pricing on higher-value work.
  • The current scale of one partner supported by 20 staff creates an opportunity to add partner capacity or formalize delegation so more work is delivered through leveraged staffing rather than owner concentration.
Threats
  • The firm is highly dependent on a single partner, with 1 partner and revenue per partner of $5.0 million, creating key-person and succession risk if that individual reduces involvement or exits.
  • The partner age of 32 suggests a younger ownership profile, which may indicate limited near-term succession planning but also means the business may be more exposed to continuity risk if the current partner is the primary rainmaker and operator.
  • With 20 staff supporting $5.0 million of gross revenue, the firm’s operating model appears concentrated around a small team, which can limit scalability and increase execution risk if any key staff depart.
  • Billable hours of 30,000 against $5.0 million of revenue imply meaningful utilization dependence, so any softness in chargeable hours could pressure top-line performance.
  • Although EBOC is 50%, the margin still leaves limited room for operational slippage, making profitability sensitive to staffing inefficiency or revenue disruption.
Enhance Profitability

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

45% 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 20:1
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

Adding even one partner can eliminate the -1.0 to -1.5 multiple penalty, potentially increasing firm value by 25-40%.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

[-1.0, -1.5]

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.