- The firm generates $8.0 million of gross revenue, providing meaningful scale for a buyer to underwrite.
- With 30,000 billable hours, the practice shows substantial production volume that can support continuity of earnings.
- EBOC is 50%, indicating a clear operating margin level that is directly relevant to valuation and cash flow analysis.
- The firm has 3 partners and 20 staff, giving a defined operating structure with a 23-person total headcount.
- Revenue per partner is $2.67 million, which is a material productivity metric from a buyer’s perspective.
- All three partners are age 32, which provides a clearly stated and unusually young partner group for succession planning analysis.
- EBOC of 50% indicates only moderate profitability, which can limit valuation relative to higher-margin firms.
- Revenue per partner of $2,666,667 is not especially high for a three-partner firm, suggesting limited earnings leverage and a smaller platform effect.
- The firm has only 3 partners and 20 staff, which points to a relatively small scale that can constrain buyer synergies and growth capacity.
- All three partners are age 32, creating a very young partner group that may raise retention and succession continuity questions for a buyer if any partner departs.
- Increase billable hours and/or pricing to lift revenue from the current $8.0M base, as 30,000 billable hours suggest room to expand capacity monetization.
- Improve leverage by developing the 20-person staff under three partners, which could support additional revenue without proportional partner growth and enhance scalability.
- Maintain and build on the strong 50% EBOC margin, as preserving high profitability while growing would be highly supportive of valuation.
- Increase revenue per partner from the current $2.67M by broadening the firm’s production base and reducing reliance on a small partner group.
- Use the young partner group (all partners age 32) to support a longer growth runway and succession continuity, which can strengthen buyer confidence and valuation.
- At $8.0M of gross revenue supported by only 3 partners, the firm is highly dependent on a very small leadership group, which can create succession and continuity risk if any partner reduces involvement or exits.
- The partner group is uniformly young at age 32, suggesting limited tenure and potentially less proven long-term leadership depth, which may increase execution risk in a transaction or transition.
- With 20 staff and 30,000 billable hours, the firm’s operating model appears relatively lean, so any staffing disruption could have an outsized impact on delivery capacity and revenue generation.
- Revenue per partner of approximately $2.67M is strong, but it also indicates that a large share of firm value is concentrated in a few individuals, increasing key-person risk for a buyer.