Request for Investment & Investment Review Process
The Fund’s approach to investigating investment opportunities
is designed to be both efficient and effective. To expedite and
simplify the initial review process, we ask companies to provide
their initial input in summary form and in electronic format.
The amount of information we ultimately request will be a function
of our interest in fully exploring the investment opportunity.
The first couple of steps of the investment review process will
undoubtedly seem impersonal and somewhat mechanical, as the Fund
is gathering initial information required for a preliminary assessment
of each investment opportunity. As (if) we progress further into
the investment review process, the process will become more interactive
on a personal level and may include a number of meetings and site
visits. The time required to complete the investment review process
will vary from company-to-company, likely ranging from as little
as a day or two (for opportunities that don’t fit the Fund’s
investment focus) to several weeks to as long as several months
(to complete the entire investment review process and make an
investment). As you might expect, the process of really getting
to know each other requires a non-trivial investment of time.
Before a company decides to submit an investment request and
related information to the Fund, the company should first review
the SAF website to determine whether or not the investment opportunity
is a potential fit for the Southern Appalachian Fund. Click here
to review the Fund’s general investment criteria. If your
opportunity does not match the Fund’s investment criteria,
it won’t be necessary to submit an investment request or
related information about your company.
Step 1: The process begins when you provide
us with some preliminary information regarding your business via
our web site. You will be asked to provide contact information
and answer a series of questions designed to introduce SAF to
your business and the associated investment opportunity. All information
in Step 1 of the investment review process will be submitted electronically
via the Fund’s website.
Step 2: After our initial review, if we feel
your company has promise as an investment opportunity for SAF,
we will provide an additional list of questions regarding your
company and the associated investment opportunity. All information
in Step 2 of the investment review process will be submitted electronically
via the Fund’s website.
Step 3: If we continue to believe the investment
opportunity represented by your company is a potential match for
SAF, you will be invited to meet with representatives of the Fund.
You may be invited to come to our offices in Oak Ridge, or we
may request a site visit to your offices. Prior to this introductory
meeting, you will be asked to submit a copy of your complete business
plan and detailed financial information.
Step 4 and Beyond: A small fraction of the investment
opportunities that are assessed will progress to this point in
the investment review process. Once a company reaches this point
of the process, they may receive a term sheet (an investment offer)
from the Fund. The Fund may conduct due diligence, which would
require the exchange of significant additional information, as
well as additional meetings, to include site visits and customer
interviews. Due diligence will typically involve research into
all, or an appropriate subset, of the topics addressed in the
Diligence Checklist. If the due diligence process is concluded
with a satisfactory result, and if agreement is reached on a term
sheet, the formal investment documents can be prepared and the
transaction can be closed.
If at any step during the investment review process we decide
the opportunity represented by your company is not a fit for the
Southern Appalachian Fund, we will tell you why we decided against
the investment. Regardless of the outcome of the investment review
process, we hope you find the process to be worthwhile.