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Redwood Advisory Group

Central Point, OR · NAICS 541611 Management Consulting Services

Tax year 2026
Prepared by Grace Byrne
Medford, OR office
Section 1

Executive Summary

Redwood Advisory Group generated $4,844,000 of revenue in 2026 with 15 employees, producing an EBITDA margin of 29.2% against a peer median of 25.2%. Compared with 74 similar businesses, performance is strongest in labor efficiency and warrants examination in growth. Total benchmark variance across all categories is $91K.

Section 2

Company Snapshot

Revenue
$4.84M
Employees
15
Entity type
LLC
Years in business
18
Gross margin
90.1%
EBITDA margin
29.2%
Net margin
22.8%
Effective tax rate
18.1%
Section 3

Peer Group Definition

74 businessesNAICS 541611 — Management Consulting ServicesORRevenue $2.4M–$7.8M7–21 employeesTax year 2026

Comparison sample size 74; NAICS 541611; revenue range $2.40M$7.80M; geographic filter OR. Data availability for this client: 96% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold9.9%9.1%8.0%
Gross Profit90.1%90.9%92.0%
Payroll40.1%43.7%38.4%
Benefits4.6%6.2%5.4%
Occupancy4.0%3.6%3.2%
Marketing4.0%3.7%4.0%
Insurance1.1%1.0%0.9%
Professional Fees2.1%2.2%2.0%
Administrative & Other3.9%4.8%4.4%
EBITDA29.2%25.2%30.3%
Depreciation0.8%0.9%0.8%
Interest0.6%0.5%0.4%
Net Income22.8%19.1%22.8%
Section 5

Profitability and Operational Efficiency

Growth
23rd
Profitability
58th
Labor Efficiency
59th
Operating Efficiency
48th
Liquidity
48th
Leverage
37th
Tax Efficiency
45th
Asset Efficiency
31st
Section 6

Balance Sheet

Current Ratio
6.00
median 5.73
Quick Ratio
6.00
median 5.73
Debt / EBITDA
0.27
median 0.28
Debt / Equity
0.48
median 0.39
Days Sales Outstanding
53.53
median 49.41
Asset Turnover
3.63
median 3.34
Section 7

Tax Overview

Federal tax
$191,172
State tax
$53,920
Effective rate
18.1%
Section 179
$23,025
Owner compensation
$566,462
Owner distributions
$800,393
Retirement
$65,424
Capital expenditures
$46,263
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$3.54M+5.3%89.6%30.9%42.6%
2023$4.20M+18.6%89.6%30.9%42.5%
2024$4.27M+1.6%89.7%30.7%42.8%
2025$4.65M+9.0%90.0%29.5%44.3%
2026$4.84M+4.1%90.1%29.2%44.7%
Section 9

Opportunities for Discussion

  • Owner Compensation Structure. Owner compensation represents 11.7% of revenue compared with a 12.7% median for comparable entities. Should compensation strategy be reviewed with the tax team?Benchmark variance $50K
  • Gross Margin Variance. Gross margin of 90.1% compares with a peer median of 90.9%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $41K
  • Working Capital Position. Current ratio of 6.00 compares with an industry median of 5.73. How much liquidity headroom does the business need through its cycle?
  • Leverage Profile. Debt to EBITDA of 0.27x compares with a peer median of 0.28x. Does the capital structure match the asset base and cash cycle?
  • Payroll Efficiency. Total labor cost represents 44.7% of revenue against a peer median of 49.5%. Is the staffing model carrying capacity for growth, or absorbing margin?
  • Operating Expense Load. Operating expenses run 60.9% of revenue versus a peer median of 65.8%. Which expense categories account for the difference?
  • Revenue per Employee. Revenue per employee of $323K compares with a peer median of $243K. Is productivity constrained by capacity, mix, or pricing?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.