Marco Test 4
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$3,000,000
Annual Gross Revenue
8.33%
EBITDA Margin
$2,250,000 - $3,600,000
Valuation Range
33.33%
Economic Profit%
2
No. of Equity Partners
$100/hr
Avg Client Rate ($/hr)
2
Total Employees
75%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $3.0 million of gross revenue on 30,000 billable hours, indicating a meaningful operating scale for a two-partner practice.
  • Revenue per partner is $1.5 million, which is a material productivity metric from a buyer’s valuation perspective.
  • The firm reports 25% EBOC, providing a clear profitability measure that supports valuation analysis.
  • The practice is highly concentrated in two partners, which can simplify transition planning and ownership transfer for a buyer.
Weaknesses
  • Both partners are age 79, creating an immediate succession and key-person transition risk for a buyer.
  • The firm has only 2 partners and 2 staff, indicating an extremely small operating base that limits scale and increases dependence on a few individuals.
  • Revenue per partner is $1,500,000, which suggests a highly partner-centric revenue model that can be difficult to transfer cleanly in a transaction.
  • EBOC of 25% indicates relatively modest profitability before owner compensation, which can pressure valuation in relation to revenue.
  • Total billable hours of 30,000 spread across only 4 personnel points to a very small delivery platform, limiting capacity and operational resilience.
Opportunities
  • Reduce key-person and succession risk by formalizing a transition plan for the two 79-year-old partners, which is material to valuation given the firm’s current partner concentration.
  • Expand leverage by adding staff or junior capacity, as the firm currently has only 2 staff supporting 30,000 billable hours and 2 partners, limiting scalable growth.
  • Improve profitability through pricing and mix optimization, as the firm generates $3.0 million of gross revenue at a 25% EBOC margin, indicating room to enhance earnings quality.
  • Increase revenue per partner by building a broader client base and reducing dependence on the current two-partner structure, where revenue per partner is $1.5 million.
  • Preserve and potentially improve earnings through better delegation of billable work to lower-cost resources, supported by the current high billable-hour volume relative to firm size.
Threats
  • The firm is highly dependent on two very senior partners, with partner ages of 79 and 79 and only 2 partners total, creating a material succession and continuity risk.
  • Staffing is extremely lean at 2 staff against 30,000 billable hours, which suggests key-person dependency and limited operational depth to absorb turnover or workload disruption.
  • Revenue per partner is very high at $1.5 million, indicating the business is concentrated in a small ownership base and may be difficult to transition without disrupting earnings.
  • EBOC margin of 25% is solid but not exceptional for a firm of this size, leaving limited cushion if partner transition costs or staffing inefficiencies increase.
  • With only $3.0 million of gross revenue and a very small team, the firm may have limited scale to invest in succession planning, infrastructure, or management depth.
Enhance Profitability

Improving EBITDA margin from 8.33% to 25% could increase firm value by 50-100%.

8.33% EBITDA margin
Operational Efficiency

Improving leverage to 5:1 can increase profitability and firm value by 20-35%.

Leverage ratio 1:1
Revenue Acceleration

Growing revenue above $5M increases base multiples from 4-5x to 5.5-7.5x, potentially adding 30-50% to firm value.

Risk Mitigation

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
Reducing average partner age below 60 or having a clear succession plan can add 0.5-1.0x to your multiple, increasing value by 15-25%.

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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.