Joint Venture

Alliances (JV) go wrong most frequently due to neglect of the first stage–strategy development. We focus companies on ensuring that deals are structured correctly from the outset, with a solid understanding of mutual economics.

Alliances and joint ventures serve many purposes, including filling gaps in capabilities or facilitating new market entry. Several trends drive the value of these partnerships, including:

• Shortened product life cycles
• Globalization of competition
• Increased specialization of skills and capabilities, particularly in high-technology businesses

We assist clients through several stages of the joint venture process: strategy development, partner selection, deal structure and operating implementation. We have found that alliances go wrong most frequently due to neglect of the first stage, strategy development. Therefore, we focus disproportionately on ensuring that alliances are structured correctly from the outset, with a very clear, shared vision and a solid understanding of mutual economics. At the same time, we have experience coming into an alliance after problems have appeared and supporting management on a restructuring to optimize value for both parties.

We assist our clients in joint venture partner search by effectively evaluating their strengths and weaknesses. We conduct the valuation of the company to understand and establish synergy between the partners. We also assist our clients by walking through negotiations. These services can be availed at standard market prices.

Entering the target market in double quick time as the geographical area would remain beyond reach without local partners.

• Local business partners could provide vertical and horizontal market penetration.
• Availability of human resources in marketing / R&D/ Production and Operations.
• Availability of legal resources with the local partner to structure the joint venture and ensure all compliances.
• Accessibility of distribution channel.
• Reduction in overall costs/ economies of scale.
• Spreading of risks mainly on large scale investments.

We provide complete solutions taking care of the following aspects:

• Conduct a thorough partner search evaluating their strengths and weaknesses.
• Understand and establish synergy between the partners.
• Walking through negotiations
• Conducting the valuation of the company
• Structure the proposed entity through all statutory and legal compliances.