Investment Philosophy
We are long-term investors who believe that business success is based on character, discipline, and experience. We care about the customers, the employees, and the communities of the firms we acquire, and we work hard to protect their interests throughout the acquisition process. We believe these qualities make the Pathways Capital offer an attractive means to maximize the value of your business.
Our Process
In searching for acquisition candidates Pathways Capital relies heavily on investment bankers, business brokers, accountants, lenders, and attorneys to help us find good investment opportunities. We enjoy positive and mutually rewarding relationships with these intermediaries, and we work hard to be considerate, confidential, and responsive. Our staff is committed to providing immediate responses to calls and correspondence as well as fast, frank indications of interest.
After a preliminary conversation with management, we visit the company and view operations first hand. Next, we present prospective investments to our partners for consideration and discussion of critical issues. We endeavor to offer a preliminary expression of interest quickly. Our investment team then conducts a broad array of due diligence, including conducting market research; assessing business and market conditions, management, products, competition, customers and vendors; developing financial models; and benchmarking performance against industry peers.
Pathways Capital’s evaluation of an acquisition candidate is on a strictly confidential basis and takes into account issues such as employee welfare and an owner’s tax planning.
We then negotiate investment terms, develop a financial and ownership structure, contact potential lenders (if needed), and submit a letter of intent. After mutually agreeing on the terms of the transaction, the final step is documentation and funding of the transaction.
After the transaction is complete, Pathways Capital works to smoothly transition the existing owner out of the business with minimal disruptions for customers, employees, and suppliers. Pathways Capital’s management team oversees the day-to-day operations of the business, and members of the investor team actively participate on the Board of Directors or as formal advisors to the company.
