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 Sample Due 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.