The Landmines That Kill ETA Deals - And How To Avoid Them [Webinar]

This Week in ETA:

Searchers: We are excited to be hosting a webinar with our QoE Partner Caleb Basile, of QoE Prep. From an investor perspective, deals without QoEs are usually not worth the risk, but from a searcher perspective, what are you really giving up by not doing a QoE? And what kind of findings actually come out of them? Caleb and his colleague Chloe will answer those questions and more next Wednesday, February 18, at 1 ET. Register here to attend.

Investors: Just over a month into the new year, we’re seeing a high volume of deal flow - and several opportunities we’re genuinely excited about. Activity remains strong across the country and across industries, which is encouraging. That said, familiar themes persist. Elevated multiples and high customer concentration continue to be common friction points. We’re staying disciplined on both fronts, focusing on businesses where risk is identifiable and manageable rather than simply chasing top-line growth. We’re especially grateful for the personal referrals from fellow investors and searchers. Those introductions consistently lead to some of the most interesting conversations and highest-quality opportunities. Thank you for continuing to think of us - it truly makes a difference.

Partner Perspective:

Matthias Smith, Pioneer Capital Advisory - You’re a Green Card-Holding Searcher; What’s Next?

The SBA’s recent change is more than a policy update - it’s a meaningful shift for the acquisition community. In ETA, ownership structures are rarely simple. Searchers partner with co-investors, independent sponsors syndicate equity, and family members often hold passive stakes. Under the new guidance, if any owner is a green card holder rather than a U.S. citizen, or if a U.S. citizen owner resides abroad, the deal will no longer qualify for SBA financing after March 1. That’s a significant constraint in a market where SBA loans are the backbone of small business acquisitions.

Buyers and advisors need to audit ownership structures now - not at LOI, and certainly not during underwriting. Early clarity creates options: restructuring equity, pursuing non-SBA financing, or adjusting timelines.

At Pioneer Capital Advisory, we are actively working to identify conventional and non-SBA lenders willing to finance acquisitions in the SBA size range for green card holders. There is a real gap here. If you’ve been impacted, we want to hear from you. Even if we don’t have every answer today, we’re committed to building solutions alongside you.

Plus:

• Struggling to get ahold of business owners? This article from Deal Prospectors goes through why a multi-channel approach is critical when trying to secure an off-market deal.

• Do you understand the difference between realization and utilization? If you don’t, you should - particularly if you plan to acquire a professional services firm.

Question:

Hit reply and tell us -If you’ve had a QoE done before that yielded something insightful, what was it?

P.S. - Share Your Buy Box:

If you’re a searcher, let us know your buy box! We see a lot of proprietary deals and love to bring right-fit searchers in on them.