Bill on prior approval of companies entering into agreements with the public sector has a broad framework
A few weeks ago, the government submitted a draft law for consultation that will affect all companies – including Danish ones – that enter into agreements with public authorities and companies within areas that are characterized as either a critical sector, critical technology or critical infrastructure. The consultation period expired on 29 March 2023, and after that we expect a rapid adoption of the legislative changes that the proposal will entail, probably by mid-2023 at the latest. What a critical sector, critical technology and critical infrastructure? The Investment Screening Act has been in force since 2021, and has meant that the purchase of and investment in Danish companies by foreign persons and companies, the establishment of subsidiaries in Denmark and the conclusion of certain agreements with Danish contracting parties must be pre-approved by the Danish Business Authority, if we are within the scope of a number of critical sectors, critical technology and critical infrastructure, cf. the overview at the bottom of this news (in English). In this context, Denmark has defined what is critical very broadly, also when we compare ourselves with the other EU countries. We find that concrete clarification is often needed as to whether a given technology is critical or whether an area is actually defined as critical infrastructure. The new rules will initially only come into effect in the area of energy, and this is done in order to frame the conclusion of an agreement regarding the future energy island in the North Sea, but it is expected that a large number of the other critical areas will be covered before the end of 2023. Public contracts The new rules aim at any “public contract”. Public contracts are very broadly defined as any goods purchase, construction, framework, supplier, operating, service or concession agreement (i.e. in relation to the latter, where a contracting authority transfers responsibility for the delivery of a construction work or a service to a supplier who, as consideration for this, either receives the right to use the construction work or the service or this right together with the payment of a price) within a critical area, which is entered into with state, regional and municipal authorities, bodies governed by public law and associations of one or more of these authorities or one or more of these public law bodies as well as state companies. There is no lower limit for what value the public contract must have in order to be approved. If it concerns a critical area, the value is immaterial. Purely Danish companies are also covered. Until now, investment screening has been reserved for cases where foreigners were involved, including in relation to Danish companies owned from abroad. But the new screening rules in the area of public contracts apply to all contracting parties, and thus also purely Danish companies. This is, of course, a very drastic expansion of the scope of application of the rules, and something that must be expected to entail significant administrative burdens for companies that have the public sector as customers. Subcontractors Furthermore, the focus of the new rules is not only on the direct contracting party, as subcontractors must also be specified and approved as part of the procedure at the Danish Business Authority. If the subcontractors of e.g. significant partial deliveries are not known at the time of the contract award, the Danish Business Authority can set a condition in the permit that these must be approved when they are appointed. The companies that apply must therefore have incredibly good control over the use of subcontractors and they may have significant administrative burdens, also during the contract period. The approval process The process of approval can risk significantly delaying the conclusion of the contract, as the application must, as a rule, only be submitted once a party to the agreement has been identified for the agreement in question. In special cases, e.g. in relation to the tender process around the energy island in the North Sea, however, a requirement can be made that all bidders are approved before awarding. It is always the contracting party that must apply for permission from the Danish Business Authority. However, the covered public actors are also obliged by law, as a final agreement may not be entered into before permission has been obtained. For the same reason, an agreement entered into without permission is invalid. It is planned that unproblematic applications can be processed within a period of 45 working days, whereas, in relation to complicated applications that require a “phase 2” review, there is a deadline of 125 working days. The approval procedure also applies to public tenders. It is the specific conclusion of the agreement that is approved, and companies cannot thus be “pre-approved” to enter into an agreement with the public sector. DreistStorgaard’s comments It is our opinion that the rules for entering into agreements with public actors are significantly complicated. The complexity that has been there so far in terms of tendering rules is increasing significantly. Advisors will now often have to be involved in connection with entering into an agreement, particularly in relation to whether this requires approval, and if so, handling the application process itself. This means that the costs of entering into an agreement with public actors may risk increasing significantly. Since it is not only the company itself that must be approved, but also the subcontractors, this requires a very strict handling of the subcontractors and that one considers whether they could endanger an approval. This too risks becoming a significant administrative burden and, of course, particularly for small and large companies and in relation to agreements that are not currently covered by the procurement rules. One can therefore hope that based on the consultation response from the organizations that have been asked for advice, there will be a relaxation of the rules before they are adopted, but if the process is the same as when the Investment Screening Act was adopted in May 2021, then there will probably
Find your way through the debt collection jungle and learn the good reminder process
What do you do when a customer doesn’t pay, how many reminders should you send to the customer, and when should you consider sending the case to debt collection? It can be difficult to find your way around the debt collection jungle, but we have collected a few good tips and knowledge to make it a little easier. If a customer does not pay, it may be advantageous for the sake of the customer relationship to initially send the customer a friendly reminder of the non-payment. It could be that there has been a cross-payment or that the non-payment is simply due to an oversight. If the customer still does not pay, you should send a reminder letter to the customer. There is neither an upper nor a lower limit to how many reminders you must send to the customer before the case is, for example, handed over to our debt collection department. However, there is a limit to how many reminder fees you may charge: You may only claim a total of three reminder fees spread over three reminder letters sent at least 10 days apart. The reminder fee must be clearly stated in the reminder letter and must, as a rule, amount to no more than DKK 100. It is important that during the reminder process you consider whether it is time to send the claim to debt collection. In this connection, it would be appropriate to keep an eye on when the claim expires. Invoice claims expire after 3 years as a starting point. The claim should therefore be sent to debt collection in good time before then. What do you do when your customer does not pay despite reminders? If, despite reminder letters, the customer still does not pay, there are two options for the further process regarding recovery of the amount. Option 1) You can either choose to send a collection notice to the debtor yourself. In that case, it is important that the debt collection notice states that the debtor can pay off the claim within a minimum of 10 days without incurring additional costs, and that the case will be sent to debt collection with additional costs for the debtor if payment is not made , cf. § 10 of the Debt Collection Act. Option 2) You can also choose to simply send the matter to our debt collection department, which will subsequently send a debt collection notice – and a letter to the debtor. Depending on the nature of the case, the case can subsequently be sent to the enforcement court with a view to obtaining a judgment for the claim as well as the possibility of obtaining security in the debtor’s assets, if any.
Do your company’s statutes and rules of procedure correspond to reality?
The Danish Parliament has recently adopted an amendment to the Annual Accounts Act, so that the deadline for reporting the annual report will henceforth be 6 months. In this connection, we encourage all companies to check whether their articles of association contain a wording about the previous reporting period of 5 months, and we are happy to help you check and make the necessary changes. For example, if a company’s articles of association contain a wording that an ordinary general meeting must be held within 5 months of the end of the previous financial year, the articles of association should be amended so that the general meeting can be held within 6 months of the end of the previous financial year. Are there rules of procedure? In the same connection, we encourage companies with a board of directors to review their rules of procedure. We find that many auditors in recent years have tightened up their responsibility to check whether a company holds the number of board meetings stated in the company’s rules of procedure and whether minutes of the meetings have been prepared. Therefore, the rules of procedure should reflect reality. There is no requirement for a specific number of board meetings, but it is considered good management to hold a minimum of 4 annual meetings. We can help you ! We are of course happy to help check your company’s articles of association and any rules of procedure and make the appropriate changes. You are more than welcome to contact DreistStorgaard on tel.: 5664 3320 or by email kontakt@dslaw.dk.
When liquidity presents the company with challenges and leads them towards bankruptcy
The current economic situation in 2022 means that we will experience more bankruptcies. Unfortunately, the trend shows an upward curve and here in October it is expected that the number of bankruptcies will also be high, as in the previous months [1] . This is where restructuring can be used to make a last ditch effort to prevent bankruptcy and give the company a chance to get back on its feet. The purpose of a reconstruction It is to place the company in a state of hibernation, where the financial conditions are examined and where the options for saving all or part of the company are clarified. It provides an overall overview of how best to handle the liquidity crisis. The creditors may have different interests and one option for them to take care of them is to enter into composition agreements where the amount of the debt is reduced. In a number of cases, the creditor may be better off by waiving part of the debt during a restructuring than by taking the company under bankruptcy proceedings. Why does the company end up in a reconstruction If the company has liquidity problems and fails to pay their bills on time. But even if you are no longer able to pay your bills on time, it does not necessarily mean that you have a bad business.[2] In many cases, the poor liquidity can be caused, for example, by a large customer going bankrupt, a lost court case or the like, where an unexpected loss occurs. The practicalities of reconstruction You can, both as an owner or as a creditor, where the payment has not taken place on time, request a reconstruction in the probate court. It can be a long process, but typically takes about 7 months and must be completed within 12 months, otherwise the probate court automatically requests bankruptcy proceedings. During this period, a reconstructor will be appointed to handle the process. At the same time, a planning meeting with the creditors is scheduled, and then an advertisement is placed in the Statstidende, where the creditors are encouraged to register their claims and come to the planning meeting in the bankruptcy court. The planning meeting itself includes a vote where the creditors must vote on whether they can approve the overall plan from the reconstructor. If the overall plan is approved, the final reconstruction proposal must be drawn up within 6 months, which must then be adopted at a voting meeting in the bankruptcy court. If the proposal is accepted and confirmed by the probate court, it has legal effect and thereby also applies to creditors who may not have voted in favor. If the plan for reconstruction cannot be adopted, the bankruptcy court will basically declare the company bankrupt. Counseling At DreistStorgaard, we have extensive experience in advising companies in connection with liquidity problems. Our specialists are familiar with the issues of insolvency law and can therefore help with the establishment and implementation of financial reconstructions of crisis-affected and insolvent companies. We are ready to advise and help you Contact us on 5663 4466 or kontakt@dslaw.dk By lawyer Steffen Kristiansen [1] https://www.finanshus.dk/makrookenomi/brat-stigning-i-konkurser/ [2] https://www.finanshus.dk/makrookenomi/brat-stigning-i-konkurser/
DreistStorgaard Advokater has assisted with the sale of Viking Energi A/S to Kosan Gas A/S
The capital owners of Viking Energi A/S, with advice from partner Svend-Aage Dreist Hansen, have sold the company to Kosan Gas A/S per 1 December 2022. Since 2012, the Danish company Viking Energi A/S has been a significant player on the Danish gas market. The company has sold and distributed gas in bottles and tanks to businesses and retailers all over the country. When the opportunity for a sale presented itself, and the timing was right, the capital owners in Viking Energi A/S chose to enter into dialogue about a sale. Therefore, on 1 December, Viking Energi A/S was taken over by Kosan Gas A/S, which is one of the Nordics’ leading suppliers of gas in tanks with over 90 years of experience. With the purchase of Viking Energi A/S, Kosan Gas A/S strengthens their position on the Danish market. DreistStorgaard has been involved since the start-up of Viking Energi A/S, and therefore it is a special deal for Svend-Aage Dreist Hansen, who says: “A chapter for the owners of Viking Energi A/S is over, and it has been a big decision for them to sell their company. We are happy to have advised the capital owners in Viking Energi A/S, and together we have arrived at a good result. Our role has been to provide comprehensive and targeted advice in order to optimize the process and the results as best as possible.” The director of Viking Energi A/S, Kenneth Krogh, says about the collaboration with DreistStorgaard: “The collaboration with Svend-Aage Dreist Hansen and DreistStorgaard goes back a long way, and with good reason. I am very satisfied with our cooperation regarding the sale of Viking Energi A/S, where the whole process has gone well and constructively. We have achieved a good sale, and with advice from DreistStorgaard, the extensive legal work has been managed. Thanks to Svend-Aage (ed. Attorney and partner Svend-Aage Dreist Hansen) and his team for the great work.” Congratulations on the business transfer to the capital owners in Viking Energi A/S
DreistStorgaard assists the Viking group in connection with property investments in Croatia
DreistStorgaard Advokater has assisted the Viking group with the preparation of the set of agreements regarding a number of investors’ investment in a real estate project with 20 luxury villa apartments in the coastal town of Rovinj in Croatia. The project is the Viking Group’s 20th project in Croatia since 2010, and the Danish property developer now has a portfolio that includes property projects in a number of cities, including Zagreb, Umag, Rovinj, Opatija and Rijeka. In total, the Viking group has initiated real estate projects with more than 1,000 apartments and villas in Croatia for an investment amount of almost EUR 100 million, of which EUR 30 million. in equity has been raised by more than 30, primarily Danish, investors. The Viking Group has put together a team with extensive international and local experience, consisting of Danish and Croatian forces, who on most projects budget and deliver an IRR over a 3-4 year period of 18-20% while also being able to offer investors a hurdle rate of 8%. Viking Group’s CEO, Jeppe Vestergaard Frandsen, says: “After 12 years in Croatia, we have established a good market position and good relations with the central players, including in relation to sourcing new projects, banks, local authorities, construction companies, estate agents, architects, etc. When you see this in combination with a market which is a member of the EU, which has growth well above the level in the EU, which is underdeveloped in the cities and where urbanization is far below average – and which in 2023 will be part of both the eurozone and Schengen cooperation – then we want to continue to grow our commitment in Croatia”. DreistStorgaard’s team on the case was partner Nikolaj Juhl Hansen and Casper Simonsen, who have now advised the Viking group in connection with the investments in +15 projects. Jeppe Vestergaard Frandsen says about DreistStorgaard: “I have now worked with Nikolaj and his team for 5 years, and it is good to have a “safe hand on the wheel” in relation to getting our investors anchored in a clear financing agreement. They have been a really good help in terms of creating security for our investors”. Advice at DreistStorgaard At DreistStorgaard, we advise on real estate projects both at home and abroad. We have a strong team that specializes in real estate, and can therefore advise on all aspects of a property investment or trade.
Do you have a handle on the rules on moving-in and moving-out inspections?
27 December 2022 If you, as a landlord, own more than one residential lease, you are covered by the rules on holding move-in and move-out inspections. Failure to comply with this means that you as the landlord lose your claim to repair the lease upon the tenant’s vacating, this also applies even if the tenant has defaulted on the lease. A great many rent board cases include the landlord’s eviction claim in connection with the tenant’s eviction, and if the formalities are not in place, the landlord has lost the case in advance, which unfortunately we see all too often. Settlement inspection The tenant must be summoned to a move-in inspection, however, there is no requirement for a written summons or requirement for the length of the tenant’s notice, as the tenant must be able to adjust accordingly in terms of time. It is our clear recommendation that the move-in inspection is always held at the same time as the keys to the tenancy are handed over. During the actual move-in inspection, the condition of the tenancy must be documented by drawing up a real move-in report. It may be a good idea to take pictures of the rental, as a supplement to the report. The move-in report must be handed over to the tenant during the inspection itself, and the tenant must acknowledge receipt of it. It is therefore not sufficient that e.g. send the report subsequently per email to tenant. If the report is prepared electronically, it must be sent to the tenant at the end of the inspection, and the tenant must acknowledge receipt of it immediately upon receipt. Only if the tenant does not attend or refuses to acknowledge receipt of the report, you have the option of subsequently sending it to the tenant, which must be done no later than 2 weeks from the move-in inspection. In practice, however, this exception has little meaning. The most important thing for you as a landlord is to prepare a correct and detailed report as well as secure documentation that the tenant has de facto received this during the actual move-in inspection. Evacuation view When the time has come for the tenant to move out, an eviction inspection must also be called and held. At the eviction inspection, the tenant must be summoned to the eviction inspection in writing with at least one week’s notice. In the event that the tenant does not attend the eviction inspection, it is important that the formalities surrounding the summons are complied with, as otherwise the eviction inspection cannot be validly held, and the deadline for holding it risks being missed. Invitations can be made per letter, email or SMS, depending on your agreement on digital communication and how you have communicated so far. It is important that you have documentation that the tenant has been duly summoned. After the tenancy has been terminated or terminated, it is possible for you and the tenant to enter into an agreement on a shorter notice for the eviction inspection. However, always remember to follow up such an agreement with a written notice, e.g. ”According to the telephone agreement, I hereby confirm our agreement on holding the eviction inspection[dato] , at[tidspunkt] ”. The eviction inspection must be held within two weeks of the tenant’s eviction (key handover), or from the time when you become aware that the tenancy has been vacated, e.g. upon notice from the tenant. During the eviction inspection itself, a written report must be drawn up – as with the move-in inspection – in which the condition of the tenancy at the time of eviction is indicated. Again, it is a good idea to supplement the report with pictures, especially of any damage to the tenancy for which the tenant is liable. It is essential that it is specifically stated which renovation works the tenant is responsible for, e.g. wallpapering and painting walls in the living room and bedroom, replacing a broken door in the kitchen, etc. It is not possible to make further claims than what is stated in the eviction report, unless there are hidden faults and defects which could not or should not have been discovered during the eviction inspection. Therefore, remember to bring everything with you. The tenant must – as when holding a move-in inspection – have handed over a copy of the eviction report at the inspection itself, and the tenant must acknowledge receipt of this. It is not sufficient that e.g. send the report subsequently per email to tenant. If the tenant does not attend the eviction inspection or refuses to acknowledge receipt, the report must be sent to the tenant in writing no later than two weeks from the inspection. The most important thing for you as a landlord is to prepare a correct and detailed report and secure documentation that the tenant has been summoned to the eviction inspection and has received a copy of the eviction report during the inspection itself. Alternatively, this has subsequently been sent to the tenant, due to the tenant’s failure to attend or if the tenant has refused to acknowledge receipt.
Greenwashing: New rules clarify the boundaries for when you can call something green
In this article, DreistStorgaard’s business team reviews the Danish rules on when a company is guilty of greenwashing . Today, many companies make a point of telling what they do in the ESG area, but you have to be careful that you don’t communicate something that actually goes against the rules of proper marketing. The problem is that some companies make themselves out to be greener than they really are, and are thus guilty of greenwashing . The new “quick guide” from the Consumer Ombudsman This is the focus area of the new guidelines, a so-called “Quick Guide”, which the Consumer Ombudsman has come up with [1] . At the same time, the Consumer Ombudsman is given more money; 7 million per year in the period 2022-2025, to combat illegal greenwashing. When companies communicate to the outside world, it is seen more and more often that they use words such as “environmentally friendly”, “we focus on reducing CO2” and “we are sustainable”. This gives the recipients the impression that they are dealing with a “green” company. But when are you really so “green” that you have to say so? The rules on misleading marketing The rules on misleading marketing are set out in §§ 5-6 of the Marketing Act and in § 13 [2] , and generally it follows that climate and environmental statements that are used in a marketing context (i) must be correct; (ii) must be clearly worded and (iii) must not omit material information. Not only that, you must also be able to document statements about facts, which means that such statements must be able to be investigated and either substantiated by statements from or confirmed by independent experts [3] . The Consumer Ombudsman distinguishes between ” general ” and ” specific ” statements, and the way in which the two types of statements must be handled are different. General environmental statements General statements are positive statements such as “green”, “climate friendly”, “environmentally friendly” and “sustainable” – and often give the impression that there is a positive environmental effect. As the Consumer Ombudsman says, ” all production will affect the environment/climate, it is therefore basically misleading to use this type of statement in marketing “. As a company, you may therefore only use these general statements in very special cases. The following criteria have been set in relation to the use of the general environmental statements: The product referred to must belong to the absolute best on the market . If several products are equally good, none may be mentioned in positive terms in relation to having an environmental profile. In continuation of section 1 it must be able to be documented that the product generally burdens the climate or the environment significantly less than similar products. The requirement for the documentation is that it must be based on a life cycle analysis [4] of the product and can be supported by opinions or studies from independent experts. If your product has obtained an official labeling scheme [5] , this may be called “more environmentally friendly”, “better for the environment” or the like without a life cycle analysis being carried out. When using general statements, where there is also information about a specific environmental benefit of a product which explains the general part of the statement, a life cycle analysis is not necessary if it is ensured that the general part of the statement is read together with the explanation. However, a number of additional requirements are made in these situations, including that: The environmental benefit must not only have marginal importance for the environment. The environmental benefit must not have resulted from activities that in themselves damage the environment. The climate or environmental benefit of the product must not be significantly reduced by environmentally harmful aspects of the product [6] . It must be a distinct environmental benefit that is not usually found in similar products. Concrete statements Strictly specific statements are a little easier to use, as neutral and concrete information about a product or company given in an objective manner, without emphasizing environmental or ethical considerations, will not normally be considered suitable to mislead consumers. But here, too, there are limits that you must be very aware of. If a product only meets environmental requirements, this must not be communicated as an environmental benefit. You must also remember to continuously assess the statements that have been circulated, and update these if they are no longer correct. It can, for example, happen due to technological breakthroughs, which mean that a product that was previously very environmentally friendly is no longer so. Communication on carbon footprint reduction Many companies are working to reduce their CO2 footprint, and when communicating about this, it requires special attention to stay within the framework that the Consumer Ombudsman has now set out: You can only say that you are trying to reduce your carbon footprint if this is expressed in the adoption of a concrete plan that has been verified by an independent third party. You must produce green accounts that account for achieved and future reductions, and you cannot use historical reductions in this connection. You can only say that you are carbon neutral if your emissions are zero . If compensation mechanisms are used, this must be explained in precise terms and these must be verified by independent third parties. When can you call yourself sustainable? One term in particular is often used in communication, the word “sustainable”. In the Brundtland report from 1987, which bears the title “Our Common Future”, sustainability is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs “. According to the Consumer Ombudsman’s statement, it will be very difficult – without misleading – to call oneself or a product sustainable. The rule is that a sustainability claim must be based on a comprehensive life cycle analysis that – when health, social and ethical issues are also taken into account
Is your company compliant?
The Data Protection Regulation and the Data Protection Act, which have been in force since 25 May 2018, provide for a new, significantly increased level of fines that must be effective and deterrent. With the regulation, it is also assumed that the Member States harmonize the sanctions for breaches of the data protection rules. In Denmark, it is the Data Protection Authority that, as the supervisory authority, controls the compliance of private and public authorities with the data protection rules. As far as the Courts’ processing of personal data is concerned, the task is left to the Danish Courts Agency. The Norwegian Data Protection Authority processes complaints and can, if necessary, initiate investigations on its own initiative. As part of the enforcement of the data protection rules, the Danish Data Protection Authority has been granted a number of powers. These powers are divided into investigative powers, corrective powers and approval and advisory powers. This article deals exclusively with the first two types of powers. As far as the investigation of the data processor’s compliance with the data protection rules is concerned, the Data Protection Authority can demand from the data processor any information that is of importance to its business – in other words, the Data Protection Authority can issue orders that the data processor must hand over information. Next, the Danish Data Protection Authority has access, without a court order, to the premises of the data processor, from which processing of personal data is carried out. If the Norwegian Data Protection Authority concludes that the data processor does not comply with the data protection rules, it is assigned a number of so-called corrective powers, of which warnings, criticism, various orders, prohibitions and fines are the most important. This article deals exclusively with fines for companies. When the Danish Data Protection Authority has to set a fine, this is generally done based on the considerations set out in the data protection regulation article 83. The fine must thus be effective, proportionate to the violation and have a deterrent effect. Based on the general principles that follow from the data protection regulation, the Danish Data Protection Authority has issued fine guidelines regarding both fines for natural persons and fines for companies. As far as fines for companies are concerned, it follows from the guidelines for the assessment of fines for companies that the Danish Data Protection Authority first determines the so-called basic amount, which is then adjusted on the basis of a number of elements: The Norwegian Data Protection Authority determines the basic amount The basic amount is adjusted based on the nature, seriousness and duration of the violation Additional aggravating or mitigating circumstances are included If the fine now exceeds the data protection regulation’s maximum, it will be adjusted down If there are good reasons for this, the fine can be adjusted due to the company’s ability to pay Since the calculation of the total fine is relatively complex, this article deals only with the general features of the calculation of the basic amount. In the calculation of the basic amount, the nature of the violation and the size of the company are taken into account. The Danish Data Protection Authority has published a number of decisions which can contribute to a more concrete understanding of the level of fines. You can find the published fine cases here. According to the data protection regulation, companies can be fined a maximum of up to: 75 million DKK (static fine ceiling) or 2% of the company’s total global turnover (dynamic fine ceiling), whichever amount is higher. The Danish Data Protection Authority has divided these violations into categories 1-3, where category 3 can result in the largest fine. 150 million DKK (static fine ceiling) or up to 4% of the company’s total global turnover (dynamic fine ceiling), whichever amount is higher. The Danish Data Protection Authority has divided these violations into categories 4-6, where category 6 can result in the highest fine. In addition to the powers to issue fines, the Danish Data Protection Authority is authorized to publish its statements and decisions. In practice, this means that the data processor’s errors can be published on the Danish Data Protection Authority’s website, from which anyone (including journalists) has access to the circumstances of the case and the Danish Data Protection Authority’s position on this. Concluding remarks The data protection rules can seem very confusing to many ordinary people. As stated above, lack of knowledge of the rules can have very large financial consequences as well as consequences for the publicity of your company. If you are in doubt as to whether your company’s processing of personal data is in accordance with the data protection rules, you can always contact DreistStorgaard Advokater. We are available for any questions you may have. You can contact us on phone 56 63 44 66 or by email kontakt@dslaw.dk.
DreistStorgaard powers the work in the M&A area and advises in connection with capital fund transactions
DreistStorgaard has advised the owners of a group of electrical installers in Zealand, including A/S Aage Langkjær with headquarters in Skælskør, in connection with the sale to the Norwegian capital fund Credo Partners, which at the same time also buys El & Teknik in Næstved and El-Comp in Vordingborg. Credo Partners has recently sold the Norwegian company Konstel, which with 20 acquisitions of local electrical installers in 3½ years grew from NOK 400 to NOK 1.5 billion. in turnover, and is now trying to repeat the success in Denmark. DreistStorgaard has advised the owners of A/S Aage Langkjær and other sellers regarding all aspects of the transaction, including preparation of the sale, implementation of due diligence, internal structuring prior to the sale, employment law matters and negotiation of transaction documents. In some areas, DreistStorgaard has also had a coordinating role for all the sellers in the transaction, including in relation to the reinvestment made by the owners. The main shareholder in Aage Langkjær, Lars Juhler Kristensen, who continues in the role of day-to-day manager of the company, says:It is an exciting path we are embarking on together with Credo Partners and the other sellers. It will be exciting to develop something together. Throughout, we have had very good help from the team at DreistStorgaard, who with a “safe hand” have helped us navigate the transaction documents and get everything in place. You could count on things being under control”. Client partner at DreistStorgaard is Søren Storgaard and the team that has worked on the case also includes partner Nikolaj Juhl Hansen as well as Janne Brustad, Katja Skovlund Jensen, Pia Petersen and Helle Hindborg. Søren Storgaard says:Super-exciting case to work with. I really believe that there is a good rationale in the thoughts that Credo Partners has, and it will be exciting to follow our clients on the new journey. Thanks to my team, who have put in an excellent effort, even if it has sometimes been into the wee hours.” DreistStorgaard’s M&A team is currently busy with transactions in the SME segment, and the transaction is the third major one in 2023 for the team. Read more here . Nikolaj Juhl Hansen, who joined DreistStorgaard as a new partner on 1 November 2022, says: “We are extremely busy at the moment and do not feel any kind of slowdown in our M&A segment. We act for a number of Danish companies that are in the process of processes with foreign buyers, so the level of activity is high. It really is a fantastic team that is in place at DreistStorgaard and I really enjoy working with all the new colleagues. With more transactional news in the pipeline, 2023 is shaping up to be an exciting, if busy, year. El & Teknik was advised by Thomas Colstrup from Advodan in Næstved and Christian Schlüter-Wraa from Penta Advokater advised El-Comp. DreistStorgaard thanks everyone for a good and smooth collaboration. You can read Credo Partners’ announcement of the transaction here .