JOINT VENTURE
Why joint venture could accelerate your business growth?
Because your business will share:
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intellectual property,
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assets,
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knowledge,
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expertise & skill sets,
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technology advances to cut cost,
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advertising & labour to cut cost,
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profits.
What is a Joint Venture:
A joint venture (JV) is a strategic alliance where two or more parties, usually businesses, agree to form a partnership for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. A common use of JVs is to partner with a local business to enter a foreign market. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal. A joint venture (JV) is not a partnership. That term is reserved for a single business entity that is formed by two or more people. Joint ventures join two or more different entities into a new one, which may or may not be a partnership.
To identify:
- the need of JV whether for researches, production or both,
- the goal/s of the venture
- projects to take on,
- to either to operate separate entity or operates jointly as separate entities,
- potential JV partner/s.
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The number of parties involved
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The scope in which the JV will operate (geography, product, technology)
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What and how much each party will contribute to the JV
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The structure of the JV itself
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Initial contributions and ownership split of each party
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The kind of arrangements to be made once the deal is complete
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How the JV is controlled and managed
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How the JV will be staffed
To do:
- set up the legal structure,
- possible to Project Manage it.