Exit Story: DD Readiness for SaaS Companies with Marco Feelisch of Pathway

This interview is based on an episode of the torq.partners Finance Podcast featuring Marco Feelisch, founder and co-CEO of Pathway Solutions. The full episode is available on Spotify and YouTube as a video podcast.

How did the product idea for Pathway come about—and what exactly does your company do today?

It all started with our own D2C brand on Shopify, which scaled rapidly. By the time of the first tax audit, at the latest, it became clear that OSS rules, a lack of DATEV interfaces, and CSV exports did not provide a viable financial foundation. This gap gave rise to a product that automates revenue and payment accounting for e-commerce and SaaS business models and reliably transfers the data to the accounting system.

How long did it take for you to be “exit-ready”—and how did you get in touch with the buyer?

After about three years as a boutique consulting firm, the product was systematically developed into a SaaS offering about four years ago. An exit was not on the agenda; the process began with recurring inbound inquiries from the market. Initial, non-binding discussions gradually evolved into a structured process—with the clear goal of remaining operationally independent while simply gaining stronger infrastructure and greater reach.

Where did Pathway stand in terms of its team, number of customers, and profitability when the talks began?

At the start of the discussions, the team consisted of about 20 people and served approximately 1,500 customers (later just under 3,000). Pathway was operating close to break-even. Growth was deliberately pragmatic: new positions were filled only after the corresponding customer contracts had been signed. A “remote-first” approach and a deep understanding of complex revenue and payment processes remained key constants.

Why did you choose this particular partner, and what criteria were important to you?

Control and freedom were key: a minority stake rather than full integration, the continuation of the brand and product roadmap, and no compromises on remote work culture or decision-making processes. The company was looking for a partner that understands mission-critical software, provides infrastructure, and strengthens the go-to-market strategy without overhauling the established culture.

What exactly does “DD-Readiness” mean—what really needs to be in place before the process begins?

What’s needed is a clean, well-organized data room containing incorporation and contract documents organized into a clear folder structure, as well as readily accessible financial records. From a financial perspective, it was extremely helpful to have business analysis reports and other reports available very early in the month, to document forecasts clearly, and to maintain consistent definitions. Capacity planning is also important: Due diligence takes place alongside day-to-day business operations and requires realistic timeframes.

How long did the process take, and what was the most time-consuming part?

It was an intense period, from the LOI in May to the closing in late August/early September. Most of the effort went into explaining the financial and operational models, deriving the assumptions, conducting cohort and customer analyses, and handling the legal work on the contract documents. At the same time, the data room had to be curated: complete, properly structured, and without unnecessary oversharing.

Which KPIs and reports were key, and how did you measure them?

The BWA served as the definitive basis: Only revenue recorded there counts. This was supplemented by cohort analyses, ACV trends (new and existing customers), documented reasons for churn, and CAC payback (including marketing headcount). Product NPS and Employee NPS also played a role. For validation purposes, anonymized customer lists and analyses were provided that were consistent with the financial perspective.

What tech and security topics were the focus? What would you have liked to have reviewed earlier?

Key areas included security and code scans (libraries, licenses, copyright), infrastructure hardening, and data protection. There was a high level of respect for the technical due diligence (Tech-DD); automated checks conducted in advance would have reduced stress in some cases. Recommendation: Integrate such checks into the engineering routine early on and repeat them regularly.

How was the Finance track organized, and which discipline really helps founders?

Revenue data was available daily; the BWA was initially prepared externally and later brought in-house to speed up group reporting. Simple discipline is often underestimated: recording documents promptly, establishing clear tool processes, and sticking to definitions. Those who set these fundamentals up properly early on save time during due diligence and avoid discussions.

What has changed in your role at the company since the deal, and what are you looking forward to next?

This left more room for strategy rather than for every individual operational discussion: new integrations like Amazon, focused product initiatives, and setting the right course in AI and product organization. In the long term, the goal is to connect finance in such a way that companies can look into a single system and understand their status—not through outdated collections of PDFs, but through reliable, interconnected data.