- The firm generates $8.0 million of gross revenue, which is a meaningful scale indicator for a buyer.
- EBOC is 50%, showing that half of gross revenue remains after owner compensation and is a clear profitability metric.
- The practice produces 30,000 billable hours, indicating substantial operating volume.
- Revenue per partner is $2.67 million, which is a strong productivity measure on a per-partner basis.
- The partner group consists of three partners, all age 32, which provides a clearly defined and relatively young ownership structure.
- The firm has 20 staff, supporting the reported billable-hour capacity and revenue base.
- EBOC of 50% indicates only moderate earnings conversion, which can limit valuation on a buyer’s cash-flow basis.
- With just 3 partners producing $8,000,000 of revenue, the firm shows partner-centric scale and a material key-person dependency risk.
- The partner group is uniformly age 32, which signals a very young ownership base and raises succession and retention visibility risk for buyers seeking stability.
- Revenue per partner of $2,666,667 is high relative to the small 3-partner platform, suggesting revenue is concentrated around a limited number of owners rather than a broader management bench.
- The firm’s 20 staff supporting 30,000 billable hours implies a relatively lean operating base, which may constrain near-term capacity without additional hiring.
- Increase revenue per partner by leveraging the current three-partner platform, as the firm already generates $2.7 million per partner on $8.0 million of gross revenue.
- Expand capacity and scale by improving staff leverage, with 30,000 billable hours supported by 20 staff and 3 partners indicating room to add production without immediate partner count growth.
- Preserve and potentially improve the 50% EBOC margin by maintaining disciplined cost structure while scaling billable hours and revenue.
- Use the relatively young partner group at age 32 to support a longer growth runway and reduce near-term succession pressure, which can enhance valuation stability.
- At $8.0M of gross revenue supported by only 3 partners, the business appears highly dependent on a very small leadership group, which can create succession and continuity risk if one partner reduces involvement or exits.
- With only 20 staff across 30,000 billable hours, the firm may have limited delivery capacity and operating leverage cushion, increasing execution risk if demand rises or staffing becomes uneven.
- The reported EBOC margin of 50% is strong, but it also means valuation is more sensitive to any normalization in compensation, overhead, or utilization assumptions.
- Revenue per partner of about $2.67M is high relative to the small partner count, which can indicate concentration of production and key-person dependence within the partner group.
- The partner ages are all 32, suggesting a very young ownership base, which may imply limited tenure and a shorter operating history for assessing long-term stability and leadership depth.