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