Post on 29-Jan-2016
Kaj Lindvig
Managing Director
FINANCING COMPANY GROWTH
Danish Wind Energy Annual Event 2015
About Kaj Lindvig
Work for Small and Medium Companies:
Chairman of the Board, K2Management A/S Aarhus, 2 Owners, partly owner managedChairman of the Board, FairWind A/S, Vejle, SE Blue Equity 58%, partly owner managedBoard Member, Sub C Partner A/S, Esbjerg, Maj Invest 55%, partly owner managed
Liftra Aps, Aalborg, 2 Owners, owner managedSeaflex A/S, Esbjerg, 1 Owner, owner managed
Former related functions in DK-companies:12 years, 2001 - 2013 as CEO, CSO and Senior Advisor A2SEA A/S, Fredericia 5 years, 1995 – 2000 as CEO Semco Maritime
Lindvig Consulting offers non-executive board- and top-management support for the offshore wind supply chain.Adding value through leadership experience and hands-on know-how.
Why Capital Funds/Private Equity?
They bring money
They are shareholders on equal terms
They invest if the business cases are acceptable
They secure professionalism
They wish to create more value in the company
They want to exit – with profit
They make your company more solid to deal with
Investment strategy at SE BLUE EQUITY
• SEBE has a preference towards small and medium large companies that profit from the transition towards more sustainable and green solutions.
• Danish companies with strong competencies and a global view
• Close proximity to investor secures a strong network and deep competencies
Industry focus
• Turnover of m20-200 DKK
• No venture or turn-around
• Low risk
Mature SMEs
• Both minority and majority
• Partnership with management – people over companies
• SEBE contributes with the right framework for management to bring the company to the next level
Flexible partner based ownership
• Business system and history built on Danish knowhow/technology combined with business talent
• Niches
• Internationally oriented companies
• Preferably heavy on ‘engineering’
• Companies in stable and good shape
Other characteristics
SE BLUE EQUITY Portfolio
Strategy
FocusB2B - broad
Stage: only
established
Turnover: m40-400 DKK
Share: Minority (25-50%)
Horizon: Typically 6+ years
Gearing? Not an option
Investment: ca. m5-50 DKK
”Active minority shareholder focusing on established, medium sized production
companies (B2B)”
Industri Udvikling - investment focus
Management / organization – extremely important
Has the company shown cash earning abilities?
Growth potential?
Market position and ”uniqueness”?
Clear and convincing strategy?
Value drivers for the industry?
Exit-options? (strategic, PE, ownership?)
Industri Udvikling - wind investments
Resolux ApS: Light fixtures for the wind industry
Total Wind Group A/S: Installation, service, maintenance of wind turbines
EM-Fiberglas A/S: glass fiber elements for the wind industry
Lindø Steel A/S: cutting and processing of large steel components
East Metal Trade A/S: Production, surface treatment and test of large steel components
Maj Invest Equity - investment focus
• Large growth potential underpinned by previous strong performance
• Strong management
• Market value m100+ DKK
• Turnover m200-1000 DKK
• Partnership models
Maj Invest Equity - service and scope
• Typically investing in companies where the existing owners wish to release the company’s full potential in cooperation with a dynamic partner
• Covering multiple sectors (ex real estate and biotech)• No ultimate requirements for majority ownership• Typical ownership between 40 - 90%
Maj Invest Equity - working with the investments
• Prioritized focus on long term operational value creation
• Joint responsibility to identify common solutions and ways towards growth as well as securing the necessary resources
• Alignment of interests and expectations with the other stakeholders, including management
• Clear adaptation of expectations with partners prior to new decisions. Including what should be done after an investment is made
Maj Invest Equity - wind investments
• KK group: control systems for WTGs
• SubC Partner: survey and maintenance of offshore WTG installations
Lesson learned by working with Capital Funds engaged in SME
Professional Board with different competences between board members
Yearly: 4-6 Board meetings – including specific topics– yearly strategy meeting
Wish to create more value in the company – for exit
Correct and proper reporting and follow up - monthly
Employees in Capital Fund and Chairman of the Board close to management
Good network with professionals – also in the same industry
Tools to evaluate investments conditions from banks , auditors etc.
LINDVIG CONSULTING