Lisa Forrest

WEEKLY SBA/SMB ETA WEEKLY POWER HOURS. ALL THINGS SBA and industry related updates each Wednesday. REGISTER HERE: lnkd.in/gnTCnh6Z POLICY~SOPs / PROCEDURES / LOAN STRUCTURING / PROCESS ROAD MAP / CASHFLOW MODELS / DEAL VETTING TEMPLATES / INDUSTRY LOW DOWN / PRE-LOI COACHING / AND MORE ~ FOR FREE Every WEDS at 9 am PST / Noon EST ~ Click link to register and choose the dates that work for you. Join as often as you like! When you register, you'll receive our deal-vetting templates and analysis tools for making your search process more efficient! Interact weekly with Fellow Searchers via LIVE ZOOM and Live Q&A

Searchers: don’t let Deal #1 limit Deal #2 •The cheapest SBA loan isn’t always the right move •Ask early: can this lender fund your next acquisition? •Some lenders don’t have capacity beyond your first deal •Switching lenders later gets tricky— → SBA lenders won’t go behind another SBA loan → Refinancing an existing SBA loan has real nuance I’m seeing this firsthand: working on 5 deals right now trying to solve this exact constraint. 👉 If you plan to grow, pick a lender for the platform + the path Optimizing solely for rate on Deal #1 can cost you Deal #2 @sarah_m_andrews

Not all SBA term sheets are created equal. If you get a term sheet too fast and your gut says something’s off — trust it. If a BDO isn’t asking the hard questions early, underwriting will ask them later… and that’s when deals stall. The best lenders loop in credit from day one. Work with those lenders. @sarah_m_andrews @smbash

@SMB_ash Can't wait!!

Only six and a half weeks until SMBash 2026! Sponsors are being locked in. Speakers are almost finalized. The meals have been chosen. And lanyards are at the ready. A quick reminder: SMBash isn’t a huge conference. We intentionally cap attendance so the room stays intimate, the networking stays useful, and the connections you make are real. If you’re planning to come, don’t wait too long to grab your ticket.

Funded-Search CEOs — exited or close to it? Thinking about your *next* acquisition and want 100% or near‑majority ownership? Join Lisa Forrest & Sarah Andrews for a special session on how SBA financing can power your next deal. DM us or email to get added to our upcoming special session in the works: lisa.forrest@northwest.com sarah.andrews@northwest.com @sarah_m_andrews

Customer concentration is common in LMM/SBA deals. Not always bad for the seller. But for a high‑leverage SBA buyer? That risk hits harder. If any customer/referral channel >20%, pay attention. Key questions: • Can YOU replace that revenue if lost? • Can the industry/labor market even support growth? Ways to mitigate: • Price so DSCR still holds if key customer leaves • Seller note tied to retention • Escrow holdback • Or: no senior debt → equity + seller note + earnout (but get a LOC before close) Truth: sometimes the deal is fine… just not for an SBA loan ~ first‑time buyer with no industry experience + heavy leverage. @sarah_m_andrews @AgeofHoffman @AdamMarkleySMB @smbash

It was a great discussion!

I’m excited to share that @LisaGForrest and @sarah_m_andrews have joined NORTHWEST BANK to support entrepreneurs acquiring and growing great small businesses. We all know that Entrepreneurship Through Acquisition (ETA) is reshaping how operators step into ownership — and the SBA remains one of the most powerful tools making that possible. After nearly 9 years for me and 14 for Sarah at Live Oak Bank helping hundreds of acquisition entrepreneurs, this next chapter is intentional. The ETA ecosystem is still early — and evolving fast. More operators choosing to buy vs build. More great businesses transitioning to new ownership. At Northwest Bank, we’re building a platform focused on serving: • Acquirers • Management buyouts • Partner buyouts • Owner-operators pursuing SBA-backed acquisitions If you're buying a business or active in ETA/SMB acquisitions, we’d love to (re)connect. Let’s build the next generation of small business ownership.

@jjtejkl 99.9% actually. 🤣🤣

@LisaGForrest I know it was essentially 99% men in that room, but the rawness of that event was incredible. Above a bar in Orland, what time.

Listen to Lisa, she knows what she's talking about. My first ETA event was SMBash 1, the only other lender there was Lisa. If you're going to acquire a business, you need to understand the cash flow dynamics before you close.

Knew you’d mention that one. 😂 Your deal was small easier to take a chance. We’ve learned a lot. You were out there at 5am changing pool filters when no one showed. Some buyers today aren’t ready for that — unless they’ve been through tough times and have their own money in the game.

@LisaGForrest @patrickdichter I failed on #1 and #2 and you still funded me and it worked out pretty good. 😆

I wrote a new blog post about what's changed in the last 5 years of search funds and entrepreneurship through acquisitioin: patrickdichter.com/whats-changed-…

Growth isn’t free. And it sure as hell doesn’t just happen. You need excess liquidity. Not your operating cash. New machine? New sales hires? Expect ramp-up time. Integration. Training. Downtime. Delays. If you’re using payroll, rent, or lender money to “fund growth”… Stop. That’s not strategy — that’s gambling. Talk to your CFO. Or a fractional one. Or your CPA. More debt won’t fix a liquidity crunch. Bank deferrals don’t save you — they sink you deeper. You’ll end up needing equity. So plan ahead. Stack cash first. Then grow. @sarah_m_andrews @Slackwatercap @AdamMarkleySMB @systemsixbooks @patrickdichter @SMB_Attorney @SMB_ash @SBA_Matthias @MikeBotkin_ @CTW_SMB @profithuntercfo

As we recognize Veterans Day and honor those who have served our country, we are proud to share a special fireside chat with two incredible clients (James Maxwell and Jordan Inman) who are not only business partners but are also both military veterans. Their journey from serving in uniform to leading and growing small businesses is a powerful example of continued service. In this conversation, @sarah_m_andrews and @LisaGForrest talk with James and Jordan about their transition from military life to business ownership, their experience acquiring two companies and the values that guide them as leaders. Their story is one of resilience, purpose, and impact. It’s a reminder that service doesn’t end when the uniform comes off. We hope you’ll take a moment to watch, reflect and celebrate the veterans in your life and community. youtu.be/jwBaKoQsdg4

Come join us at the Chicago Booth eta conference where @AizikZimerman and Charles Miller of Cooper Demo will both share their stories with us CASE STUDY style. @sarah_m_andrews @SBA_Matthias and me will be leading a breakout session on SBA lending that walks through deal specifics on the acquisition and operations. Aizik and Charles approached their structures very differently. Come find out how it’s all turned out. @MrJoshFro @Mainshares_SMB @SMB_Attorney @SMB_ash @andyharbut

CHICAGO SMB Supporters, operators and Acquisition Entrepreneurs join us for a Happy Hour on 11-19. CO-SPONSORS are HOSTING Beverages and Light Bites! A rooftop venue as a backdrop for amazing EtA conversation and connections. @LisaGForrest and @sarah_m_andrews (Live Oak Bank) Abby Martin (Ampleo HR) @MrJoshFro @andyharbut (New CO Risk) Alex Maatz @Mainshares_SMB Wednesday, November 19 5:30pm-7:30pm Offshore Rooftop 1000 E Grand Ave Chicago, IL 60611 Register: forms.office.com/r/NvGqL18Upq?u… Contacts: Lisa Forrest: lisa.forrest@liveoak.bank, M: 425.999.2042 Sarah Andrews: sarah.andrews@liveoak.bank, M: 919.523.6975

BOSTON SMB Supporters, operators and Acquisition Entrepreneurs join us for a Happy Hour on 11-8. CO-SPONSORS are HOSTING Beverages and Light Bites! A classic Cambridge location as a backdrop for amazing EtA conversation and connections. @sarah_m_andrews @LisaGForrest (Live Oak) Abby Martin (Ampleo) @andyharbut @MrFroJosh (NEW CO RISK) Chris Williams/Tim Wear @systemsixbooks Saturday November 8 6:00pm-9:00pm Russell House 14 John F Kennedy Street Cambridge, MA 02138 Register here: forms.office.com/Pages/Response… Contacts: Lisa Forrest: lisa.forrest@liveoak.bank, M: 425.999.2042 Sarah Andrews: sarah.andrews@liveoak.bank, M: 919.523.6975

@Slackwatercap 👏

This post will not make me many friends, but someone has to warn people. The vast majority of the people in the California Gold Rush went bust.

It seems like every business school in the country has an ETA conference in October or November. Unfortunately, the opportunity set that exists for aspiring searchers today has declined significantly from what it was just 2–3 years ago (let alone 5–7 years ago). Today, SMB owners get bombarded with emails and phone calls from private equity funds, independent sponsors, and yes even searchers on a daily basis (ask me how I know). In my opinion, the vast majority of searchers do not have to resources to generate true proprietary deal flow via cold outreach. You are vastly outgunned here (this does change somewhat once you're in the actual operator seat). On the other hand, brokered deals for small businesses in popular industries with "decent" fundamentals (i.e. recurring revenue, low cust concentration, some middle management, growing industry, etc) and $500k-$1.5m+ of EBITDA now sell for 5-7x (or more) vs only 3-4x a few years ago. To acquire a business at this kind of multiple will require a vastly different deal structure that what searchers used in the past (i.e. the 80/10/10 model will not work!). That, or you will be stuck buying the lower quality businesses that all the better capitalized buyers (i.e. PE funds and their port co's) already passed on. Meanwhile, the number of ETA conferences, influencers, service providers, etc. keeps growing exponentially. These people are the merchants selling all the picks and shovels to the aspiring gold miners in the late stages of the California Gold Rush when all of the good gold claims have already been found and mined. Unfortunately, past performance does not guarantee future results. Caveat emptor.