erwerw
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
  • Audit represents 50% of gross revenue, giving the firm a substantial recurring service line within the overall $8.0 million revenue base.
  • The firm generates $8.0 million of gross revenue with 30,000 billable hours, indicating meaningful operating scale for a buyer to underwrite.
  • With 4 partners and 20 staff, the firm has a defined operating structure that supports the current revenue base.
  • Revenue per partner is $2.0 million, which is a material productivity metric from a valuation perspective.
  • EBOC is 50%, providing a clear profitability indicator for buyer diligence.
Weaknesses
  • EBITDA/EBOC at 50% leaves limited room for a premium multiple relative to higher-margin firms, constraining valuation upside on current earnings power.
  • The firm is small at $8,000,000 of gross revenue with only 4 partners and 20 staff, which can limit scale and increase key-person dependency risk for a buyer.
  • Revenue per partner of $2,000,000 is moderate for a 4-partner firm, suggesting each partner remains material to current revenue generation and transition risk.
Opportunities
  • Increase the non-audit revenue mix, as audit represents 50% of gross revenue and tax only 10%, creating room to broaden higher-value service lines and reduce concentration risk.
  • Improve operating leverage and scalability by increasing billable hours per partner, since 30,000 billable hours across 4 partners indicates meaningful capacity to grow revenue without a proportional increase in partner count.
  • Enhance partner productivity and valuation density, as revenue per partner is $2.0 million and the firm has 4 partners, suggesting upside from better delegation, leverage, and realization of staff capacity.
  • Build out the tax practice from its current 10% revenue contribution, which could improve cross-sell, client retention, and overall mix diversification while leveraging the existing audit client base.
  • Use the current staff base of 20 against 4 partners to deepen leverage through more work delegated to staff, supporting margin expansion and allowing partners to focus on higher-value advisory and client development.
Threats
  • With only 20 staff supporting 30,000 billable hours and 4 partners, the firm may have limited operating depth and succession capacity if workload or partner availability changes.
  • Revenue is concentrated in audit at 50% of gross revenue, so valuation may be more exposed to performance changes in a single service line than a more diversified practice.
  • The firm’s 50% EBOC margin is solid but still leaves limited room for margin compression, which could quickly affect earnings quality and buyer returns.
  • Revenue per partner of $2.0 million indicates meaningful reliance on each partner’s production, increasing key-person risk at the ownership level.
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.