My Profitable Company Is Worthless to Investors — Here’s Why That Works in My Favor

Over the past few months, I have received amazing numbers from private equity firms and even phone calls asking if I will consider selling my business.

“Jane,” they all say, “We have followed your progress in the technology space and believe that we can help unlock the price while keeping your inheritance and the team safe. Will you be open for a 20 -minute call to discuss mutual occasions?”

It is flattering, sure. And it makes sense. According to the Harvard Corporate Governance Site, the exit of private equity increased from $ 754 billion to $ 902 billion in 2024 – about 202 billion – about 20 %. Other reports only increase in the first half of 2024, an increase of 50 % in Dell Value, with strategic acquisitions on the path.

Private equity is present everywhere – contractors, manufacturers, distributors and yes, even tech companies like me.

Why? Because many business owners are old. According to the Small Business Administration, the average small business owners in the United States are more than 55 – and it returned in 2020. So the exit wave continues, and investors are desperate to buy business with strong financial, frequent income and growth capacity.

But my business? I don't think I'm in sale. Not because I won't enjoy any offer – but because once the buyer looks down the jump, they will realize the painful fact: my company has no real value.

Related: Want to maximize the price of your business sales? Start with these 5 value drivers

Balance Sheet no one wants

Let's start with the basics. There is no severe asset in my business. No buildings, no goods, nor physical property. A bit of cash received and accounts.

Certainly, we also have very few liabilities. In fact, most of our “payment” are actually prepaid client reserves – time blocks that consumers already purchase. This is a great way to increase cash flow and reduce the risk, but it requires the buyer to respect. Not attractive at all.

No contract, there is no guarantee

We do not close the clients in long -term contracts. We have never sold a rehabilitation agreement or repeated support projects. When our clients need us, we use us – and leave when they don't.

There is no proprietary process or a secret sauce. What we do is not complicated. In fact, anyone can learn it online. Our clients do not keep us because we are unique, but because they do not have bandits to do themselves.

So if a private equity firm is to be gauged by my company, they will quickly realize that there is no expected tax for the price base. Not repeated revenue. No clear to apply. We go to the project, client to the client.

It can work for me. But it doesn't work for them.

A team that disappears when I do

I have employees But most of the tasks are handled by independent contractors. It comes with its risk-from workers' rating issues to a lack of long-term commitment.

Our setup has always been virtual. We have been far from 2005. No office. There is no common culture. Not personally meetings. Everyone works freely, and I check in as needed. It works for us – but it doesn't scream “expansionist organization”.

The truth? This business does not run without me. I sell I market I monitor the projects, handle accounting, manage the admin, and guide daily. If I collided with the bus yesterday, this business will come within 30 days – with contractors and staff to possibly work for themselves.

No IP, no exception, no ditch

We enforce the CRM platform. This is a crowd, a competitive place. The many shopkeepers we represent are often our biggest competitors. There is no barrier to admission. Competitions appear regularly – usually cheap, often smaller and sometimes better.

We have no intellectual property, documentary system or a fixed process. Each project is different, and it rarely means to create templates or workflows that will not apply next time.

So there is nothing to “buy” here. No asset. There is no exception. No edge.

So, what do I have?

I have a business that works for me.

For more than 25 years, he paid the bills, put his children through college and planned a retirement for my wife and me. It has also supported dozens of employees and contractors along the way. This is something I am proud of.

My model has always been easy: Work, bill for it, prepare cash, save whatever you can. Rinse and repeat. And for me, it has worked beautifully.

But let's be honest: This model does not make a transfer price. There is no goodwill. Not ready for buyers. There is no brand equity. No enterprise value. Only a very active, a personalized operation that disappears without me.

Related: Starting a new business? The way to take advantage of the transfer skills from your first career and run success is that

If your business looks mine

Don't discourage. But be realistic.

You may be generating cash – and it's great. You will be living well – even better. But unless you deliberately build for scale, structure and succession, your business will not be much more capable for anyone else.

And it's fine – as long as it's plan.

For me, this is.