Final answer:
Michael's tech company is in the maturity stage of the business life cycle, evidenced by its stability and attractiveness to potential buyers for acquisition.
Step-by-step explanation:
Michael's small yet profitable tech company being approached by a larger company for purchase indicates that his business is likely in the maturity stage of the business life cycle. At this stage, a company exhibits stabilized earnings, has a solid customer base, and can attract potential buyers due to its strong market position. Companies in the maturity stage often face decisions about diversifying, reinventing their offerings, or exiting the market through a sale or merger. If Michael is considering selling his business, he is recognizing that it might be an opportune moment to capitalize on the value he has built within his company.