Search Update - November Recap

As November comes to a close, I wanted to share a quick update on where my acquisition journey stands, what I’m seeing in the market, and how I’m positioning for year-end and early 2026. Search Status The search continues to move in the right direction. The A7 message resonates strongly with brokers, intermediaries, lenders, and owners. I’m increasingly seeing evidence that the market genuinely wants me to get a deal done. One recent broker conversation is a good example: while a roofing transaction proved too far apart on valuation to pursue, that same intermediary immediately brought me a different opportunity with an owner profile that may be a fit. This has been a recurring theme. What I continue to see is that deals keep coming in. And, in many cases, they are only getting better. To date, I have not looked back and thought, “that one got away.” I have strong conviction in the decisions made thus far. Deal flow will continue to be there, the story resonates, and there are a lot of people pulling for me to get a deal done. The takeaway is clear: patience and discipline are key. Pipeline Snapshot 31 new opportunities were added in November, down roughly 30% from October. This decline was not intentional. I assess the decrease was due to typical year-end slowdown and reduced activity around Thanksgiving. Despite lower volume, the pipeline remains healthy, and execution is sharpening: - CIM reviews are completed within 24–48 hours - Quickly advancing strong opportunities and passing on the ones that aren’t a fit Follow-up discipline has improved Common pass reasons: - Key person risk - Customer concentration risk Valuation Environment Valuation remains a challenge, but I’m beginning to see early signs of normalization. More deals are quietly coming back to market and sellers and brokers are increasingly focused on certainty of close over aggressive headline valuation. My approach remains unchanged: if and when I submit an LOI, it is done in good faith with full intent to close at the stated price, with adjustments only if diligence uncovers true structural or economic issues. I continue to believe this builds long-term credibility. What’s Working The A7 narrative continues to resonate. Proprietary sourcing remains slow but steady and effective. Many of the most interesting opportunities have come via network referrals. The new proprietary outreach domain is fully warmed and ready to launch, and direct mail is set to deploy shortly thereafter as a supporting effort. When a deal is compelling, I’ve been moving quickly to pressure-test with lenders and sanity-check with advisors, which has materially improved speed and decision quality. The work done this year positions A7 well to accelerate in early 2026, where I expect a meaningful influx of deal flow in Q1. What I’m Adjusting Two primary adjustments heading into December: A heavier focus on proprietary efforts as year-end brokered deal-flow slows. Selectively evaluating slightly larger opportunities and alternative structures, but only where long-term ownership is achievable and the business clears our fundamental quality, revenue, and economic hurdles. Looking Ahead December will focus on launching proprietary outbound campaigns, maintaining rapid deal triage, and positioning to move quickly as deal flow rebounds post-holidays. How you can help (my only ask) If you see a business in WA or FL that provides essential goods/services and generates $750k-3mm in EBITDA or pre-tax profit, I’d greatly appreciate an introduction. Thanks for your continued support—your feedback and introductions truly move the needle. Alex