Kran Elektro A/S in Galten has become part of a new constellation that brings together two Danish players in the rental and servicing of construction cranes. The purpose is to better utilize resources across the companies.

The transaction was completed with advice from Business Broker.

A timely generational succession

Owner and CEO Jesper Uldall Bøgh wanted to consolidate in the Danish market well before retirement.

"I wanted to clarify my generational succession in good time. No one in the family wanted to continue the business, so when I had 12 years left until retirement, I googled an advisor," he says.

Jesper Uldall Bøgh contacted two different advisors, held a meeting and got an assessment of the company and a quote for the consultancy.

"Business Broker the most professional. They seemed like a safe choice. I'm a mechanical engineer myself and more of a technician than a people person, so I needed someone who could negotiate with the big players in the industry," he explains.

Jesper Uldall Bøgh himself had been in contact with two interested buyers, both of whom were included in the structured sales process to ensure that the company could achieve the right market value.

Sales boosts customer service and competitiveness

Jesper Uldall Bøgh will continue as co-owner of the new group and continue to manage Kran Elektro A/S, which will retain its name and employees. The new constellation has several advantages. Instead of saying no to assignments or using hired equipment, both companies can follow a common strategy for optimal utilization of manpower and machinery.

"We become part of something bigger. It increases competitiveness and lowers costs - to the benefit of customers," says Jesper Uldall Bøgh.

The parties were close to reaching an agreement with a foreign buyer, but then the Danish alternative was ready to negotiate, and it was Jesper Uldall Bøgh's dream scenario from the start. It dragged out the process, but it was worth it.

"I'm happy that the company remains in Danish hands. It has to do with both culture and market insight. We have a common understanding that there is a saturation point for the number of rental cranes in Denmark," explains Jesper Uldall Bøgh.

Long process with patience

Finding the right solution has been a lengthy process, with foreign buyers also involved. Business Broker advised the seller throughout the process.

"The process required considerable patience, but we arrived at the ideal solution. It was important for us to ensure that Jesper found a buyer who would meet his personal wishes and at the same time create synergies that made sense in the market," says Michael Vadgaard Jørgensen from Business Broker, who, together with Claus Bruun and Ole Jensen, was responsible for advising on and executing the transaction.

Jesper Uldall Bøgh no longer has his assets tied up in the company, but has a holding company with new financial opportunities. Apart from that, everyday life hasn't changed that much.

"I'll still run the store as before, just as a team player instead of a loner," he says.

KRAN ELEKTRO A/S

Kran Elektro A/S
part of industry consolidation

Task: To sell Kran Elektro A/S in a timely generational succession.

Solution: Industry consolidation with sale to a new Danish company with two companies so far. The seller gets co-ownership in the new company.

Result: Former owner continues as CEO of Kran Elektro, strengthening customer service and competitiveness.

Kran Elektro is a major player in construction cranes in Denmark based in Central Jutland.

Business Broker the seller.

Jesper U. Bøgh highlights three things:

• Business Broker very discreet. They can keep confidential information close to their chest.
• Business Broker my guarantee that things will run smoothly and that everything will be in order.
• The advisors are very pleasant to be in the room with. They are very sociable also at the buyer.