Our senior team is trained and experienced in both local and international joint-ventures (JVs) with experience in both brownfield and greenfield joint-venture projects.
As many know a joint venture is probably the most difficult agreement that can be done between two companies. This because it implies the collaboration of two different companies on a common project. The complexity of the agreement stays in the fact that the two (or more) companies many times have a different business cultural environment, they are based in different countries and maybe also the final scope of the joint-venture is different.
The majority of time a JV is established to combine the forces of two or more business entities that alone would be difficult to achieve. The main scope of a JV could be:
- Access to new markets and distribution networks
- Increase of the production capacity
- Sharing of risks and costs with a partner
- Access to greater resources, including specialised staff, technology and finance
Experience Matters
Most of the joint-ventures failures are due to a poor joint-venture agreement or governance.
The following risks are quite common in a JV:
- The objectives of the venture are not 100 per cent clear and communicated to everyone involved
- The partners have different objectives for the joint venture
- There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners
- Different cultures and management styles result in poor integration and cooperation
- The partners don’t provide sufficient leadership and support in the early stages
All those risks can be edged with a solid and detailed legal agreement that point out the “WHAT IF…” clause. Yet the agreement has to be enough flexible and light to not spend too much time in negotiations. This can in fact cause the loss of the “momentum” and of the enthusiasm and miss the right time to set up the JV for the market needs.
Our senior management and legal consultants has extensive experience in dealing with this matter and are able to help our customers at all the levels of those agreements.
Here below the links to our White Papers on Joint-Ventures with an example of an extensive JV agreement:
