Private equity isn't buying your past: Why valuation is all about the future

Private equity isn't buying your past. They're buying a future they believe in—and a team they trust not to screw it up.

Your historical EBITDA growth is proof of concept, nothing more. The real question is whether that growth can continue or accelerate without you micromanaging every detail. Can the business compound systematically? Can it integrate acquisitions? Can it expand margins through operational improvements? Can it enter new markets?

If the answer to these questions requires your constant involvement, you don't have a valuable business—you have an expensive job. And expensive jobs don't command premium multiples.