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Joint Venture and Collabaration
Joint ventures and collaboration
A joint venture is a strategic alliance wherein two or more parties, usually businesses, form a partnership to share markets, assets, intellectual property, knowledge and profits.
Joint venture is different from merger in the intellect, that there is no transfer of ownership in the deal. Companies with identical products and services can also join forces to penetrate markets, they wouldn't or couldn't consider without investing tremendous amount of resources. Also, due to local regulations, some markets can only be penetrated via joint ventures with a local business. In some cases, a large company can decide to form a joint venture with a smaller business to quickly acquire critical intellectual property, technology, or resources otherwise hard to obtain, even with plenty of cash at their disposal.
Joint ventures are easier to unbundle than, full organizational mergers.
Joint Ventures are resorted to for projects which require / involve:
Heavy Capital Investment
High End Technology
Supply chain optimization
Access to resources / Complementary assets or reserves
Market positioning and portfolio optimization
Political sensitivity or energy security
The success of any Joint Venture / Collaboration is dependent on the lucidity in the thought process which has gone into the initial agreement. Interlink Capital will understand the objective of the Joint Venture / Collaboration, facilitate the jotting down the crux of the understanding in a written agreement with deep insights into all the factors such as Sharing of resources, Legal aspects, Jurisdiction for Dispute Resolution, Compensation, etc. We support in clearly defining the commercial and rationale behind the Joint Venture / Collaboration, building the legal and commercial structure, managing and operating the same on ongoing basis and then in case the need arises, the dissolution. A joint venture is a partnership between two businesses for a finite period to achieve specific goals, presenting the opportunity to leverage each other’s strengths while compensating for any weaknesses.
This involves clear understanding and respect for the other company’s work culture and a clear consideration of each one’s responsibilities and accountabilities in the partnership. A successful joint venture can help both businesses gain access to new opportunities and is an effective strategy to grow and generate profits faster. Advantages of a successful joint venture include access to knowledge and resources such as capital, staff and technology, access to new opportunities such as new markets or greater distribution reach and shared exposure to risks, financial responsibility and workload.