First step towards establishment abroad
After the first contact between the Funds and the Danish company, the real business relationship can begin. The idea has matured and been expressed well enough for work to be carried on. At this stage the Funds will discuss business strategies, managerial and organisational challenges, etc. with the company, and – on the basis of many years’ experience – the Funds will make sure that all relevant challenges are discussed.While this is going on, financing concepts and draft investment agreements will also be discussed.This process usually takes five to six months, but can be shorter if the Danish company has experience with establishments abroad, possibly from other projects with the Funds. If for instance political obstacles arise in the host country, this important stage in the process may last considerably longer.When the Funds' investment managers and the company have finished this part of the work, it will be presented to the board of the Funds or the Funds' investment committee depending on the size of the investment which must then approve the project. The board consists of business managers from the private sector and officials with experience in dealing with developing countries.