PFM Capital’s investment team conducts a routine and thorough investment process for all prospective investments. From origination to closing, the process may range from 4 to 6 weeks, to 6 months depending on the complexity of the deal. We are committed to being straightforward and timely in all parts of the investment process.
Origination
Preliminary discussions begin with meetings between our investment team and the proponent. Our goal in these early meetings is to determine quickly whether the potential transaction is a good fit for us and communicate this back to the potential partner. This permits everyone to use their time wisely. Please see the Investment Criteria page for further detail on what we look for.
Internal Analysis
The investment team will request information at this stage to help assess the company’s operations and the investment opportunity. At this stage, the information will typically be a general background of the business and basic financial information.
Preliminary Term Sheet
Upon satisfactory completion of our initial analysis, we will provide the proponent with a Preliminary Term Sheet outlining the terms on which we may be willing to complete an investment. A Preliminary Term Sheet is subject to a number of conditions and is not a commitment to finance. It is rather an agreement to determine the interest level from both parties, based on relatively well-defined terms and conditions, such as investment amount, basic structure, initial valuations, and owners’ participation.
Due Diligence
Our Due Diligence process is detailed and intensive. The goal of this stage is to ensure we have all the information necessary to confidently advance funds on an investment. This stage also is essential in determining the viability of a partnership between both parties for up to 5 to 7 years.
Final Term Sheet
Once Due Diligence has been completed, any remaining details surrounding price, conditions and covenants may be confirmed in a mutually-binding Final Term Sheet presented to the proponent.
Approval
All of our investments require approval from our respective Investment Committees (this is always a condition in our Preliminary Term Sheets). Our Investment Committees are made up of experienced business and industry leaders, and our investment team is challenged on all aspects of the transaction and business to ensure all risks have been considered.
Legal Closing
Depending on the complexity of the transaction, the length of the legal closing process can vary. We are committed to a timely closing process while ensuring that costs are managed appropriately.
Following the Legal Closing, the partnership between the portfolio company and PFM Capital begins, and we work in concert to build value for all parties.
Portfolio Management
We are committed to monitoring all of our investments closely, while adding value to the company through our management team’s business experience. Though we are not involved in the day-to-day operations of a portfolio company, we may request that a member of our investment team, or another of our nominees, participate on its Board of Directors.
Exit
As an investment management company, ultimately our goal when making an investment is a successful exit. We will work with management to ensure an exit that works both for our investment funds but also for the company.
