“We’re making 1k a year and we have no debt. How much can we sell our business for?”

That was the first question from one of our clients.

On paper, it was the dream company:

• More than 10 years in business
• Stable revenue every year
• No interest-bearing debt
• Enough cash on hand

It was like reading the definition of a cash cow in a textbook.

But valuation is never just about the headline numbers.
When we dug into their revenue structure, we found most of their products had razor-thin margins — commodities that buyers can easily compare and switch.

So yes, the company was strong and the valuation came out high, but the growth potential was limited. Unless a buyer sees clear synergy benefits, what they pay is what they’ll get.

That’s the difference between valuing a stable cash cow and a growing business.

One gives you comfort, the other gives you hope.

👉 Which one would you rather own?

#BusinessValuation #MergersAndAcquisitions #ORNA #ValuationInsights #Entrepreneurship