First step towards setting up operations abroad
The initial business idea has matured and been clearly formulated. At this stage, focus shifts to business strategies and managerial and organisational challenges.
After the initial contact between IFU and the Danish company, the cooperation begins in earnest.
The initial business idea has matured and been clearly formulated. At this stage, focus shifts to business strategies and managerial and organisational challenges. Conditions in the prospective host country are also discussed and practical and legal issues are thoroughly investigated.
While this is going on, financing models and draft investment agreements are also discussed. IFU and the company decide on the form of investment IFU is to make and the distribution between e.g. equity and debt.
This phase usually takes five to six months, but it may be significantly shorter if the Danish company has experience in establishing operations abroad or has previously collaborated with IFU on investments.
This stage of the process may also take longer if, for instance, there are political obstacles in the host country.
When IFU's investment managers and the enterprise have finished this stage, the investment proposal will be presented to the board of IFU or IFU's investment committee for a final decision on whether IFU is to become involved in the project.