From a business standpoint, joint ventures, in whichever form they take place, enable the joint parties to team up together to share ownership, resources, risks, rewards, knowledge, technology and most importantly access to diverse markets. The fundamental driver of a joint venture between two or more companies is to derive synergy out of the commercial relationship. The motivations for joint ventures vary but primarily are either driven by growth, such as expanding into a new market, combining market shares to increase barriers to entry or internationalisation, or by a strategic decision to mitigate risk by sharing it, especially in projects requiring resource intensity and material capital outlays.
We are firmly convinced that teaming up and converging strengths and weaknesses in a complementary fashion gives rise to significant value-creation opportunities. Our local and international experience in conceptualizing, forming and kick-starting numerous joint ventures, enables us to bring to our clients a wealth of knowledge to be applied in their context with the major success factor being the attainment of ‘win-win’ scenarios in joint venture relationships. What differentiates us is that whilst we fulfill our brief for our client we seek to add long-term value by ensuring that all parties to a joint venture registers success out of their engagement.
Our services in the joint venture development setting cover the full lifecycle of a joint venture, independently of its complexity. The point of inception is the definition of the objectives and operating parameters of the client, followed by a joint venture strategy and the definition of the framework in which the prospective partner would fit in. We follow on to source, short-list and designate preferred partners for the joint ventures and helping our clients in negotiating the deal structure leading to the formulation of the joint venture agreement covering the full scope of the relationship, outlining the roles, obligations, commercial terms and responsibilities of the respective partners.
In our methodology we give particular importance to the entrenchment of strong risk management and business continuity practices all framed within a clearly defined exit strategy and programme for the client, once the joint venture would have reached the targeted stage of maturity.