Laurence
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$2,000,000
Annual Gross Revenue
25%
EBITDA Margin
$1,500,000 - $2,400,000
Valuation Range
50%
Economic Profit%
2
No. of Equity Partners
$67/hr
Avg Client Rate ($/hr)
8
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $2.0 million of gross revenue, providing a meaningful revenue base for valuation analysis.
  • Tax work represents 80% of revenue, indicating a highly concentrated and clearly defined core practice.
  • The firm produces 30,000 billable hours, which supports a substantial level of ongoing fee production.
  • EBOC is 50%, showing that half of gross revenue is available before owner compensation and can be relevant to buyer cash flow analysis.
  • With 2 partners and 8 staff, the firm has a 10-person operating base that supports current production.
  • Revenue per partner is $1.0 million, which is a useful productivity metric from a buyer’s perspective.
Weaknesses
  • Earnings quality is limited by a 50% EBOC margin, which indicates only $1.0 million of EBOC on $2.0 million of revenue and constrains valuation leverage on profitability.
  • The firm is highly tax-dependent, with 80% of revenue coming from tax work, creating a concentrated service mix that can weigh on multiple expansion.
  • The partner group is small and succession-sensitive, with only 2 partners at age 65, increasing key-person and transition risk for a buyer.
  • Scale is modest, with just $2.0 million of revenue and 8 staff supporting 30,000 billable hours, which can limit operating leverage and buyer interest relative to larger platforms.
Opportunities
  • Increase consulting revenue mix from 20% to improve service diversification and support higher-margin growth relative to the current tax-heavy profile (80% tax revenue).
  • Reduce key-person risk and strengthen succession value by addressing the concentration in two partners, both age 65, through transition planning and leadership depth.
  • Scale revenue per partner beyond the current $1.0 million by expanding leverage from the 8-person staff base and improving partner productivity.
  • Preserve and potentially enhance the strong 50% EBOC margin by maintaining disciplined pricing and cost control as the firm grows.
  • Use the 30,000 billable hours base to improve utilization and capacity planning, creating room for incremental revenue without a proportional increase in partner count.
Threats
  • The firm appears highly partner-dependent, with only 2 partners and one identified partner age of 65, creating near-term succession and continuity risk if transition planning is not in place.
  • Staffing is lean relative to scale, with 8 staff supporting $2.0 million of gross revenue and 30,000 billable hours, which may constrain capacity, execution depth, and scalability.
  • Revenue is concentrated in tax work at 80% of gross revenue, leaving the business exposed to underperformance or volatility in its largest service line.
  • Consulting contributes only 20% of revenue, so the firm has limited diversification outside tax services and may have less earnings resilience if tax demand softens.
  • Revenue per partner is $1.0 million, which is solid but also indicates that a meaningful share of value is tied to a small partner group, increasing key-person risk in a transaction context.
Enhance Profitability

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

25% 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 4:1
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.