STEP 6: Present Deal to IIC for Active Pipeline Approval

 To get the IM team’s input and opinion about the deal before advancing to Tool – Deal Screening Form (DSF).  To get IM team approval to advance – company will move from Prospect to Sourced.

Process:

1. RM adds the prospect and a link to the completed FIF to the Monday pipeline agenda no later than the Friday before the meeting. 2. During the weekly country and regional pipeline meeting the RM pitches the deal to the IM team: a. This should take no more than 10 minutes. b. The RM’s job is to convince other IM members that the prospect is a strong candidate for the [INVESTOR NETWORK NAME/ ACRONYM] and/or [FUND NAME] portfolio. c. The RM should have a strong case for each criterion. d. The RM should be able to clearly articulate why the think the prospect is a good fit for the portfolio and what we’re building (cluster/platform). e. The IM team should try to find reasons why the deal is not a strong candidate –in an iron sharpens iron type of discussion. f. The RM should be able to address the IM team’s red flags and areas of concern. g. Note to Reader: RENEW does not use a gender-lens to “screen-out” prospective deals. Our firm’s approach is to build SMEs into market-leading, gender-smart companies run by gender-balanced management teams, regardless of their gender-smart “score” or status prior to investment. That said, we strongly encourage investment firms / funds to track the gender profile of their pipeline companies to ensure gender biases are not present in the Pipeline Management process. 3. SIM asks for a vote: Do we advance to the Internal Investment Committee? a. Choices are: Yes, Advance / No, Hold / No, Pass. b. If yes, the prospect status is now “sourced.” 4. SIM updates the decision in the Country Pipeline tool. 5. RM update files and folders in firm’s shared drive: a. Relationship Manager creates COMPANY NAME firm’s shared drive folder in the PRE-PIPELINE folder for the country.

Standards:

● All companies should be treated respectfully and encouraged, even if they do not pass a decision stage at [INV./FUND MANAGER NAME].

● All companies must be communicated with in a timely manner about where they are in [INV./FUND MANAGER NAME]’s investment consideration process.

● If the company is not advanced in the process, they should be given recommendations and, when possible, referred to other investment firms.

STEP 5: COMPLETE THE DEAL SCREENING FORM (DSF)

The DSF, when completed, organizes important information for the IIC to make an informed decision about whether a deal will be a strategic fit for the portfolio, aligns with the firm’s investment strategy and to objectively evaluate the merits of the growth plan, risks and return potential of the deal.

Outcome:

 To collect information on the sourced deal to present to the IIC for their approval to Stage 2 within two weeks of meeting a company.

Process:

1. RM informs the prospect via email and a phone call that it has passed [INV./FUND MANAGER NAME]’s initial screening, and they will advance to a more detailed review of the opportunity. 2. RM sends the prospect a Non-Disclosure Agreement (NDA), requesting they share key documents: a. NOTE: If an NDA has not been signed at this stage, the RM can offer that [INV./FUND MANAGER NAME] and the company sign the NDA. b. Key documents being requested: i. Business plan/feasibility study. ii. Excel financial model. iii. Audited financial statements (prior three years, if available). iv. Corporate documents (Note to Reader: check country requirements.) 3. RM collects key documents: a. RM saves all documents to the firm’s shared drive folder. 4. RM holds follow-up meeting with sourced deal to gather all information needed to complete the Deal Screening Form (DSF): a. Notes should be taken by a designated person in the Running Active Pipeline Notes (or running pipeline notes). 5. RM and SGS team conduct site visit: