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Investment criteria
Borevind works according to a number of investment criteria in order to assess if companies fit in our portfolio and will be a successful investment for our shareholders. The strategy is based on investing in the entire value chain within each energy segment, from planning, through design and component production to energy production. Borevind invests in unlisted companies in which Borevind intends to be an active owner. In order to limit the risks and ensure long-term value growth in the share portfolio, Borevind chooses to invest in companies that fulfil the majority of the investment criteria listed below.
• a unique service or product, possible to protect by patent
• cost efficient technology, not subsidy dependent
• distinct and preferably well advanced business process
• good earnings potential with little risk
• growth potential, preferably international
• simple and easily understood business activity
• a well functioning management
• that the founders remain as partners in the company
Investment process
Borevind invests in unlisted growth companies within renewable energy. A balance is made between either investing in different forms of energy in order to spread risks or to strengthen investments already made. We invest in companies that are in the early stages of their operations and also those that have commenced with some sales of their products.
Borevind does not just invest capital. A seat on the board of the portfolio company is a condition in order for Borevind to invest. Borevind’s organisation and board of directors have lengthy and broad experience within renewable energy, company development, industrial expertise, investment activities and finance. Combined, good conditions are created for participation in the portfolio companies which generates value.
Companies of interest shall have the potential to become growth companies – preferably international ones with the possibility of creating and maintaining a profitable market position.
We prefer investments of the following character;
• SEK 1 – 10 million per object
• investments only in legal entities
• minority interests, however not less than 25 percent of the shares
• invest with partners in parallel
• seat on the board
• shareholder agreement
Fundamental to Borevind’s ability to identify interesting investment targets is the combined competence of the management and board of directors within renewable energy. This includes a specialized and international contact network and continuous monitoring of the surrounding world.
Screening
Selection of possible investment targets is carried out through contacts with colleges, universities and trade organisations in conjunction with active monitoring of the surrounding world.
Analysis
A basis for decision-making is created by examining each object based on a number of key questions. Internal resources analyse questions regarding product, market, competitors, production, launch and distribution. In addition, Borevind obtains expert competence with regard to technology, law and patent issues or within other areas that lie outside of the company’s own proficiency.
Decision
The analysis work is presented and examined by Borevind’s board of directors. The board determines whether a formal Due Dilligence process and negotiations on an agreement shall be initiated. Accordingly, the complementary analysis forms the basis of a possible investment decision.
Owner participation
The board work in the portfolio companies is important in order to facilitate the best possible value development. Borevind always makes a demand for board representation and is represented in the portfolio company by the person best suited to contribute to a positive development of the company. This is governed by the needs of the company.
Exit
Borevind has a long-term perspective in relation to its investments. Opportunities are created to structure companies with close or similar operations through the ambition of investing in the entire value chain within each energy segment. The conditions are hereby created for stronger companies that either generate positive long-term cash flow through dividends to Borevind or a direct cash flow through a disposal to another industrial player or through a listing on the stock exchange.
Financial information
Borevind AB has stable finances in order to conduct planned operations for twelve months.
www.firstnorth.se
www.bequoted.com/investor/company.asp?BolagId=116
Reporting dates 2010
Inerim report January-March 2010, May 31, 2010
Annual General Meeting, June 23, 2010
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