STRATEGY

The fundamental strategy of BHG is to apply a hand-in-hand management approach for all clients. BHG adds value to its portfolio companies by offering support and access to resources in key management areas, such as business planning, financing, implementation and recruiting of executives, in addition to motivation through incentive programs and growth management. BHG applies this strategy in three phases:

Phase One : Careful due diligence of the prospective portfolio company is the prime prerequisite. Beyond the classic analysis, BHG seeks to quantify the full potential of a company. Together with management, BHG creates a foundation to reach defined goals that form the strategic plan of the new venture. This process is often longer than a straightforward question-and-answer form of due diligence. A period of two to three months is not unusual.

Phase Two : With a strategic plan that serves as the guiding principle of company development, products are refined to match customer requirements as reference customers and channels are built through partnerships. The organization is expanded to meet the challenge of the dynamic global marketplace. A thorough plan for business development is conducted in a team-based effort in co-operation with management. This ranges from occasional operational meetings when resources are already in place, to daily hands-on participation when such resources are not yet present.

Phase Three : Following the establishment of a mature company, the final phase is partnering. This involves attracting next-level investors, positioning the company for strategic partnership with large, global players, or preparing for a stock listing of the company. Normally, this is a parallel process that runs along side the hard work of developing the business. BHG will not quit easily and as a lead investor BHG has an obligation to represent the common interest of the shareholders in these matters. To the extent possible, BHG protects management from distracting and time consuming fund-raising exercises. In summary, BHG is continuously seeking to balance the interest of shareholders, board and management.